The Australian, New Zealand and Canadian dollars have fallen under the weight on lower commodity prices and broad dollar strength.
Gold broke below the psychological $900 an ounce mark on an intraday basis to hit a monthly low (it has since recovered). Australian building approvals were much weaker than expected, dropping by 0.7 percent last month instead of rising by 1.0 percent like the market expected. RBNZ Governor Bollard talked down the Kiwi when he said that the weak economy justifies the easing bias. In other words, he is confirming that interest rates will continue to fall and for that reason, we expect the New Zealand dollar to make a run below 70 cents. Canadian economic data on the other hand was very positive with industrial product and raw material prices rising strongly in the month of June.
