The Canadian, Australian and New Zealand dollars extended their recovery despite a drop in commodity prices.
This move was due entirely to the improvement in risk appetite because these currencies did not take off until after the release of the stronger than expected US existing home sales report. The New Zealand and Canadian dollars will come back into focus this evening with New Zealand credit card spending and consumer confidence reports due for release. This will be followed up by the Canadian retail sales report which is expected to reflect a sharp increase in consumer spending. With the unemployment rate dipping to 33 year lows, consumer spending should remain firm.
