Canada posts international trade deficit of C$1.1 billion in March

• Canada posted a surprise trade deficit in March.
• USD/CAD pair posts strong daily gains above 1.2300 after the data.

Canada registered a merchandise trade deficit of C$1.1 billion with the world in March, the monthly data published by Statistics Canada revealed on Tuesday. This reading worse than analysts' estimate for a surplus of C$0.7 billion.

"In March, Canada's imports posted a significant increase of 5.5%, while exports edged up 0.3%," the publication further read.

Market reaction

The USD/CAD pair edged slightly lower from the daily high it set at 1.2346 after this data and was last seen trading at 1.2325, rising 0.4% on a daily basis.