The Australian, New Zealand and Canadian dollars extended their gains despite mixed price action in commodity prices and weaker economic data.
Average weekly wages and new motor vehicle sales dropped in Australia while credit card transactions slowed in New Zealand. The chart of the Australian dollar suggests exhaustion but we still believe that any retracements will be temporarily because of the overall strength of the Australian economy. Canadian retail sales are the only piece of economic data with any consequence tomorrow. A sharp decline in wholesale sales suggests that retail sales will fall short of expectations as well, but traders need to be careful because employment in the month of January was particularly strong which means that even if spending slows, it should not be negative.
