The Canadian economy is on a very different path from Australia and New Zealand.
Over the past week, Australian economic data continued to surprise to the upside, confirming the strength of the Australian economy. Canada on the other hand has reported nothing but disappointments. Last month, the country lost 18k jobs, the most since 2003. This year, we expect the Bank of Canada to cut interest rates by at least another 50bp. Australia and New Zealand on the other hand will probably leave rates unchanged. Next week the focus will turn to Australia and New Zealand with Australian employment numbers, New Zealand consumer prices and retail sales due for release.
