The U.S. dollar
held firm against commodity currencies on Tuesday and hovered near
decade-highs against its Canadian peer, which has come under renewed
pressure this week due to tumbling global oil prices.
Commodity
currencies also remained on the defensive after Chinese trade data for
November did little to soothe concerns about China's economic slowdown.
The greenback edged up 0.1 percent against the Canadian dollar to C$1.3514 CAD=D4, trading near Monday's 11-year high of C$1.3524, the strongest level for the U.S. dollar since mid-2004.
OPEC's inability to agree on a production ceiling last Friday meant that supply will continue to
depress oil prices. The decision gave investors the green light to sell crude and currencies of oil exporters such as Canada and Norway.
"The decline in oil prices... will not be a one-night trade. Anticipate further downward pressure on oil prices, bond yields and commodity currencies," said Richard Grace, chief currency and rates strategist at Commonwealth Bank of Australia.
"With no major U.S. economic data until U.S. retail sales on Friday, commodity price themes will drive trading this week."
The greenback edged up 0.1 percent against the Canadian dollar to C$1.3514 CAD=D4, trading near Monday's 11-year high of C$1.3524, the strongest level for the U.S. dollar since mid-2004.
OPEC's inability to agree on a production ceiling last Friday meant that supply will continue to
depress oil prices. The decision gave investors the green light to sell crude and currencies of oil exporters such as Canada and Norway.
"The decline in oil prices... will not be a one-night trade. Anticipate further downward pressure on oil prices, bond yields and commodity currencies," said Richard Grace, chief currency and rates strategist at Commonwealth Bank of Australia.
"With no major U.S. economic data until U.S. retail sales on Friday, commodity price themes will drive trading this week."
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