2013.08.1506:31:48UTC+00Canadian Dollar revive from 1-week low as export prospects increase

The Canadian dollar soared from its worst situation in almost a week after a report displayed the euro area’s economy emerged from a record-long recession, providing more to prospects for international progress and Canada’s commodity exports.

The currency hike for the first time in three days as data showed Canadian home prices surged last month from the lowest since 2009. The European report followed data last week that showed increases in factory production, imports and exports in July in China, the world’s second-largest economy. Canada’s 10-year government bonds were slightly altered, with yields almost at a two-year high, after a government auction of the securities.

Fed Bets

The advance by Canada’s currency was tempered by speculation that as the economy improves the Federal Reserve will reduce monetary stimulus designed to spur U.S. growth.

Bond Auction

The Bank of Canada sold securities due in June 2024 at an average yield of 2.729 percent. The sale drew C$6.98 billion in bids, for a 2.49 bid-to-cover ratio, a gauge of demand.

Canadian Homes

Canadian home-resale prices across 11 cities rose 1.9 percent in July from a year earlier, versus June’s 1.8 percent rate, according to the Teranet-National Bank Composite House Price Index.

‘Better Data’

“It’s been a parade of better data on China in the past two weeks, and it came right after a period where the market grew very concerned about China,” Button said.

The Canadian dollar slouched 2.2 percent in the past three months against nine other developed-nation currencies tracked by the Bloomberg Correlation Weighted Index. The U.S. dollar sag 0.2 percent down, and New Zealand’s dollar gave up 3 percent. Australia’s dollar was the biggest loser, surrendering 8.8 percent.