Australian Dollar Breaks Higher as Gold Prices Hit New Records
Strong economic data and rising gold prices makes the Australian dollar one of our favorite currencies.
The labor market in Australia remains very tight as the number of jobs advertised in Australian newspapers surged 7.1 percent last month. Inflation also continues to rise according to the TD Securities Inflation index, putting more pressure on the Reserve Bank of Australia to raise interest rates. On top of that we have gold prices closing above $900 oz, which has helped to rally not only the Aussie, but also the New Zealand and Canadian dollars. Unfortunately for Canada, we do not expect the currency’s strength to last as economic data continues to sour. New motor vehicle sales fell 2.9 percent in November, the third straight monthly decline.