Commodity currencies continue their dramatic swoon today, undermined by global market chaos in general but clear signs of a collapse in Chinese demand specifically. Overnight, China ordered the suspension of Australian ire ore imports
The Canadian dollar has been a particularly poor performer today, slicing through the 1.1500 level and reaching 1.1650 thus far. Selling of CAD/JPY has been huge as Japanese investors throw in the towel on carry trades. Oil’s continued slide is contributing as well as crude falls to the $82 handle. US investors have also been steady sellers of CAD all week, presumably shedding resource stocks as the global economy slows rapidly.
The slide in the CAD is particularly stunning given the huge jump Canadian employment this morning. Dealers rightly suspect this won’t last.
Heavy resistance is seen in the 1.1825/75 region, levels last seen in January 2007.
