USD/CAD in focus as Canada's September trade surplus beats at C$5.35B

Canada posted a September trade surplus of C$5.35 billion, above the C$4.1 billion estimate. The prior month was revised up to C$4.95 billion from the initially reported C$4.20 billion. The source reports no price move, pip figure or technical levels for the Canadian dollar or USD/CAD. The merchandise trade balance showed a C$5.4 billion surplus. Exports rose 0.2% month-over-month to C$78.6 billion, compared with C$78.41 billion previously. That follows a 3.2% gain in the prior month. The source lists imports as down 0.3% MoM at C$73.71 billion versus C$73.46 billion, although these two values would imply an increase. The headline beat came from exports holding near their prior level after a strong August, combined with softer import activity. The upward revision to the prior month adds to the positive picture for Canada's external balance. For traders, a wider-than-expected surplus is a constructive fundamental signal for the Canadian dollar. Its effect on USD/CAD will depend on broader market drivers not covered in this report.