Prior revised to a larger deficit at -2.66B vs -2.53 B

Imports fell for the 1st time in 5-months. Exports of energy and consumer goods increased.

  • Imports fell 1.3% to C$46.2. The decline was led by a 14.3% drop in metal and non-metallic minerals and a 12.3% fall in energy products
  • Exports increased by 0.7% to C$44.5B. IN August, exports fell by 2.9%.
    • Energy exports rose by 3.7%. Consumer goods shipments rose by 4.6%. On the downside, car parts and vehicles fell by 3.7%.

The USDCAD is higher after the report, reaching new session highs, but stalling at the old trend line (we went and failed on the break higher yesterday). The pair has also stalled ahead of the 50% retracement and the 100 hour MA (blue line in the chart below). Oil prices surged yesterday - forcing the pair lower yesterday. The most active futures contract is trading above $48.00. Brent Crude is trading above $50 a barrel.