The Canadian and New Zealand dollars rallied strongly today on the back of better than expected economic data.
Canada reported a sharp rebound in IVEY PMI and building permits. Last month, the manufacturing activity index fell to a six year low, but activity snapped back quickly in the month of January. New Zealand also reported stronger employment numbers with the unemployment rate dipping to a record low. Collectively, these two pieces of data drove the Canadian and New Zealand dollars higher. Unfortunately the Australian dollar was a laggard as carry trade selling prevented the Australian dollar from following in the footsteps of the Loonie and Kiwi.
