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Among the so-called commodity currencies only one has a place at the G-7 table—Canada. And today, Canada's central bank served up the group's first rate increase since the financial crisis began in 2008. As interest rate moves go, it was middling—only 25 basis points (0.25 percent), but with the overnight rate at just a quarter-point, rates have effectively doubled. The hike in Canadian rates will be a boon for those who've invested in commodity currencies in lieu of commodities themselves. The loonie's been losing ground to the greenback and gold recently. Another commodity currency—the Aussie dollar—has benefited from a string of interest rate hikes over the past year. Since May 2009, the Reserve Bank of Australia's ratcheted its cash rate target up 150 basis points in six steps. As a result, the Aussie currency's kept pace with the price of gold better than the loonie. You can see effect when measured through U.S.-investable exchange-traded products. Since May 1, 2009, gold—reflected in the price of the SPDR Gold Shares Trust (NYSE Arca: GLD)—is up 36.7 percent. Tracked by the CurrencyShares Australian Dollar Trust (NYSE Arca: FXA), the buck down under has appreciated 16.4 percent versus the loonie's 12.2 percent gain expressed through the CurrencyShares Canadian Dollar Trust (NYSE Arca: FXC). Commodity Currencies Vs. Gold 
Now, nobody's saying the Canadian currency's going to make up all that lost ground against gold. There's a mixed bag of economic indicators in the Great White North. The economy grew at a robust 6.1 percent clip in the first quarter, led by housing and consumer spending and employment growth. However, the Bank of Canada anticipates household spending to decelerate, wage growth to slow and aggregate supply to remain flush. All this adds up to a 60 basis point uptick in the loonie's value against the greenback this morning. Not a bad way to start a post-holiday morning.
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