What The Canadian, Australian, And New Zealand Dollars Are Saying About The World Economy

A simple, but telling chart from Yilin Nie in the latest Morgan Stanley FX Pulse.

chart

Photo: Morgan Stanley

The Canadian Dollar has been outperforming both the Aussie Dollar and The New Zealand Dollar lately.

And if you think about it, this is a nice currency proxy for the U.S. vs. China. Canada thrives off a healthy U.S. economy the way the Australia and New Zealand thrive off a healthy China. This outperformance by the Loonie is a nice sign that optimism for the U.S. is ahead of optimism for China at the moment.

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