While the Canadian dollar temporarily pared gains against the greenback after the countries' July trade data, the loonie has since pushed higher to a 13-month high. The grim surprise in Canada's data was the commodity-price rebound had little positive impact on the trade balance; energy's surplus actually dropped in July. Meanwhile, auto exports were unexpectedly poor despite the good US vehicle sales. "Overall trade, which was a huge drag on Q2 Canadian growth, seems to be worsening in sync with tepid economic growth south of the border," says National Bank's Krishen Rangasamy. With July's drop, real exports are tracking down 6.4% this quarter, Rangasamy notes, compared to up 0.8% in 2Q. The US dollar is at $0.9714, compared with C$0.9778 late Monday.
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