Australian Dollar Hits New 25 Year Highs, Bank of Canada Leaves Rates Unchanged
The Australian, New Zealand and Canadian dollars continue to gain strength on bullish economic reports and US dollar weakness.
The Bank of Canada left interest rates unchanged at 3 percent, which was right in line the market’s expectations but the BoC grew slightly more concerned about inflationary pressures. However like the BoJ, the BoC will not be altering interest rates anytime soon because US economic weakness and the ongoing turbulence in the global financial markets are keeping their hands tied. The New Zealand dollar was one of the market’s best performing currencies thanks to a sharp rise in consumer prices. CPI grew by the fastest pace in 18 years.