More Bad News Out of Australia and New Zealand
The Australian, New Zealand and Canadian dollars all fell under the weight of broad dollar strength and lower commodity prices. However, news out of Australia and New Zealand has also weighed on the currencies. Leading indicators in Australia dropped 0.1 percent in May, reflecting a gradual slowdown in the Australian economy. The big news however was from New Zealand, where a finance company has suspended withdrawals and new investments. They are not first to do so, Canterbury Mortgage Trust, New Zealand’s second largest mortgage fund announced similar measures last week. Looking ahead, we continue to expect the New Zealand economy to deteriorate. Canada has industrial product and raw material due for release tomorrow – inflation should remain hot.