The Canadian, Australian and New Zealand dollars continued to extend their gains despite a retracement in gold prices and a marginal rise in oil prices.
This is largely due to the fact that the US dollar now yields 100bp less than the Canadian dollar, 375bp less than the Australian dollar and 525bp less than the New Zealand dollar. There was no data out of Canada, but skilled vacancies in Australia dropped from the prior month. The New Zealand trade however soundly beat the market’s expectations. A strong rise in exports took the trade deficit down to the smallest level in more than two years. Australian private sector credit and Canadian GDP are due for release tomorrow.
