07.12.201714:15 Forex Analysis & Reviews: Commodity currencies fell against the U.S. dollar

The Canadian dollar collapsed against the US dollar on December 6, Wednesday, after the decision of the central bank to keep the rates unchanged.

Many experts expected that the regulator will proceed to raise interest rates, and statements made during the press conference did not affect the situation with the massive sell-off of the Canadian dollar.

According to the data, the Bank of Canada decided to leave the key interest rate unchanged at 1% but signaled that a rate hike may be required in the near future since the fundamental economic conditions continue to improve.

The board of directors also stated that the economy shows growth and develops according to the autumn forecasts, which has a favorable effect on the labor market, as well as on the growth of salaries. The report also emphasizes the growth of core inflation indicators.

As for the technical picture of the USD / CAD pair, buyers have a good chance to win back a major drop, which occurred on December 1. A break above the resistance level of 1.2825 could increase long positions in the US dollar, which will lead to an update of 1.2855 and exit around 1.2900 on November 30.

The Australian dollar fell against the US dollar after a rather weak report, indicating a decline of exports in October this year.

According to the statistics agency, Australia's foreign trade surplus in October this year amounted to 105.0 million Australian dollars, while economists expected this figure at 1.4 billion Australian dollars. The main reason for such a sharp decline was the decline in exports from Australia, which in October fell by 3.0% compared with September. On the contrary, imports increased by 2.0%.

All of this show that the plans for a more rapid economic growth of the Australian authorities by the end of this year are once again under great threat, which could negatively affect the rate of the Australian dollar. On the other hand, a larger drop in the national currency will quickly stimulate exports, which will revive the economy in the first quarter of 2018.

The Japanese yen also fell slightly against the US dollar, but trades remained in the same channel which is closer to its central border.

The yen declined after the Governor of the Bank of Japan Kuroda once again pointed out that the policy of controlling the yield curve is very successful, and the regulator will determine the appropriate yield curve based on a change in the economy and the level of lending. Kuroda also drew attention to the fact that the Central Bank will continue to carry out a powerful easing since the effect of these measures will contribute to the improvement of the economy. At the same time, Kuroda said he was following closely the influence of low rates on regional banks.