With risk appetite pulling tempered through Thursday’s session, the commodity currencies were naturally put into a holding pattern. As has been the case for months, the Australian, New Zealand and to a lesser extent Canadian dollars will continue to find their pace from broader sentiment; but that does not mean that data is to be written completely off.
In the earlier hours of the Asian session, the New Zealand Business PMI Index for August slipped on a pull back in production and new orders measures (though employment improved). The Aussie dollar was somewhat more influenced by an annual report from the RBA that stated the central bank would pay the government a record dividend of A$5.98 billion earned through buying the currency to buffer the depreciation during the financial crisis. The Westpac-ACCI industrial trends survey for the 3Q was similarly interesting closing in on a positive reading (it printed at 48.2). Finally, the Canadian dollar is struggling to keep up with the high-yield pack. The annual CPI figure for August ticked up from its 56 year low; but was contracting at a 0.8 percent clip.
