Money is melting away...

In Canada at least.  In what is proving a headache for the country's central bankers, including Mark Carney, who recently joined the Bank of England, newly issued plastic notes have attracted criticism due to their stickiness, faults with the design, and, the fact they seem to melt under high temperatures.

Australians have a long experience of using plastic notes - the ones you can wash, but they had better hope that the Aussie doesn't follow the Loonie and fall prone to melting away! (here).

Melted Loonies (c) Mona Billard 

AUD to head into the loonie bin?

Many in the markets have grouped all things Australian with Canada.  Two big resource rich countries exporting to the two biggest energy using countries, with developed financial systems attracting high inflows matched by high exchange rates.

Unfortunately many suspect Australia is subject to a similar housing boom (with matching weakness in the banks) and now with reported pressure on the Canadian currency, the loonie, investors will expect falls in the Australian dollar as well?


...It looks like sentiment toward the Canadian dollar may be shifting....The loonie, as it is known, by mid-session on Monday was on course to close at its weakest level versus the US dollar since August....The loonie’s traditionally tight correlation to investors’ perception of global growth prospects has looked very shaky of late. That soft domestic data has counteracted better economic news from the US and, in particular, China....Traders are now adjusting strategies (here).