Canadian Dollar Hits 11 Year High, Closing in on 29 Year High

Once again, the Canadian, Australian and New Zealand dollars are stronger across the board. In fact, the Canadian dollar hit a new 11 month high today and is closing in on its 29 year high.

Both Canadian manufacturing shipments and new motor vehicle sales were stronger than expected in March while a jump in consumer prices also contributed to the move. It is hard to fade the strong move in the Canadian dollar since data has consistently surprised to the downside. So far, the data suggests that Canada has been relatively immune to the strength of the Canadian dollar, even though analysts have been touting this potential drag on growth for months. The strength of the CAD should keep foreign investors very interested in investing in the loonie and we expect that to be reflected in tomorrow?s data. Meanwhile New Zealand will be reporting producer prices. The strength of the kiwi is expected to have driven inflation lower.