Canada’s yield curve inverses by the most in two decades

Kiwi extended gains for the second streight session against the Canadian dollar. Against most of the other peers, kiwi posted losses pressured by the global fears over recession induced by falling long term Treasury yields. Loonie loses more in this pair as falling oil prices weigh on the currency. US crude inventories rose and along with the disappointing Chinese and Eurozone data dragged prices down. Moreover, Canada’s yield curve inverses Wednesday by the most in nearly two decades. Bank of Canada could cut interest rates hurting one of the best performing G10 currencies. Support is set at 0.8550. Resistance is provided at 0.8650.