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Archive for 7. September 2009

Canadian Dollar Poised for Breakout?

Canadian DollarSouth African RandAussie Dollar

(Click on the charts to enlarge, charts courtesy of Stockcharts.com)

Is the Canadian dollar ready to resume it’s advance? You can see that the leading “commodity currencies” are the Australian dollar, the South African Rand and the Canadian dollar. Both the Rand and the Aussie dollar “have broken out” and it would appear the Canadian dollar is ready to do the same.

Lots of talk this weekend on a ” new world reserve currency” such as the IMF SDRs discussed here a post or two ago. I suspect this possible currency relignment talk is pushing things along currency-wise and in particular the possiblity of a reduced role of the USD.

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