In four other articles questions have been answered about the Canadian dollar in basic economic terms. Traits of all currencies have to be learned before you consider trading them on the market. It is best to learn a couple, such as four currencies you can pair up. In this way you will have a handle on the foreign currency exchange for basic economics. This is the final look at the Canadian dollar for basic economic data. From now on you will need to look at news and other fundamentals in real time from your Australian broker or news resource.
Foreign Currency Exchange CAD Reports
The USA has over a dozen reports to monitor, but the USD is the top currency in the market making sense it would have numerous impactful reports. Canada is no slouch on the report floor either with over a half dozen. Some countries you only need to monitor five reports to determine your trade position in the foreign currency exchange.
The reports to learn are Bank of Canada overnight rate, Employment and Unemployment numbers, CPI, PPI, GDP, foreign securities buying report, and trade balance. As long as you know when these reports are supposed to come out, watch for the expected talks and you can trade the CAD.
Reports have a way of changing current trends. There is an advantage for the Canadian dollar. The advantage is in the North American foreign currency exchange session. Canada is online when the USA is. The USA with its reports help show what the CAD is going to do on reaction. Since reports can come out within minutes of each other, it is sometimes easier to trade. Given the New York-London overlap that Canada can take advantage of there is yet another benefit.
Trading in Australia you can catch this overlap in the late night hours. There is a 14 hour difference, requiring a late night, but you can trade on the morning data for profit in one of the busiest overlaps the market has.
Foreign Currency Exchange CAD Extras
Before the discussion on the CAD can close, you should know two more things: safe haven and trading the CAD. Is the CAD a safe haven currency? If you answered no, good for you, because it is not a safe haven currency. There are only three currencies in the foreign currency exchange that are: USD, CHF, and JPY. Most only consider the CHF, but these other two are fairly secure versus other currencies out there.
Lastly, you can trade the CAD in all categories: spot, futures, ETF options, options, ETFs, and ETNs. There is nothing withheld in terms of market trade options from CAD pairings except for the exotic currencies not available in the same markets.
Knowing where you can trade the CAD, with what pairs, and how it tends to react to the news reports mentioned above are all important facets of currency personalities. You have the basic economic data for the Canadian Loonie. All you have to do is check the charts and recent news to decide if it is a currency you want to trade.