* C$ at C$1.0315 vs US$, or 96.95 U.S. cents
* C$ breaks through 100-day moving average
* Bond prices higher across curve
By Solarina Ho
TORONTO, Sept 11 The Canadian dollar was
stronger against its U.S. counterpart on Wednesday, breaking
through the 100-day moving average after a string of solid daily
gains prompted by last week's stronger-than-expected domestic
Divergent North American job reports last Friday were a key
impetus for the Canadian dollar's rise. The reports showed
Canada added almost three times as many jobs as expected, while
U.S. employers hired fewer workers than expected.
A string of solid data out of China has also helped lift
"September has been a runaway month for the Canadian
dollar," said Adam Button, currency analyst at ForexLive in
Montreal. "Jitters about emerging markets have completely faded
away and the Canadian dollar has piggy backed on better global
The Canadian dollar, which finally breached the
100-day moving average of C$1.0334 on Wednesday, finished the
North American session at C$1.0315 to the greenback, or 96.95
U.S. cents. This was firmer than Tuesday's close at C$1.0348, or
96.64 U.S. cents.
The loonie, as Canada's currency is colloquially known, had
closed at C$1.0506 last Thursday before the jobs data and has
gained some 2 percent so far this month. It traded at its
strongest level since August 16.
"The U.S. dollar has been the standout performer this year.
It's just taking a break right now," said Button, who does not
expect the Canadian dollar to strengthen much further.
The greenback fell to near two-week lows against major
currencies on Wednesday.
Investor focus on the Federal Reserve is expected to sharpen
in the coming days amid expectations the U.S. central bank will
begin trimming its bond buying program when it meets next week,
a move that should bolster the U.S. dollar.
Jeremy Stretch, head of foreign exchange strategy at CIBC
World Markets in London, said that investors will likely closely
watch two U.S. data releases later this week - jobless claims
and retail sales - as the "last pieces of the economic jigsaw"
ahead of a Federal Reserve meeting.
The commodities-linked Canadian dollar could also take some
cues from its sister currency, the New Zealand dollar
, following the outcome of the Reserve Bank of New
Zealand's policy statement due on Thursday.
Government bond prices were higher across the maturity
curve. The two-year bond was up 3.5 Canadian cents to
yield 1.292 percent, while the benchmark 10-year bond
rose 28 Canadian cents to yield 2.782 percent.