FX Markets – AUD and CAD

Market expectations are that the Reserve Bank of Australia will refrain from cutting borrowing costs this year which might lead to an increased demand for the AUD.  Data to be released next week might show that
service industries in China have increased. China is Australia’s largest trading partner. At the back of this the AUD advanced to a five day high versus most of its major peers and was at trading at 0.9224 against the USD. The AUD/JPY was at 91.58.

The U.S. government shutdown went into its third day, raising concerns the political gridlock will also rub off on Canada and slow its growth. The USD/CAD touched a two week high at around 1.0356 and the CAD/JPY was at 94.09.