The Australian, New Zealand and Canadian dollars extended their gains on the combination of dollar weakness and higher commodity prices.
Australia also reported better than expected leading indicators and a 7 percent rise in balance of payments. Leading indicators in Canada were right in line with expectations but tomorrow’s consumer price report could be hot. At the last monetary policy meeting, the Bank of Canada was expected to cut interest rates, but instead, they left rates unchanged which was quite a surprise for market watchers. The BoC cited inflation and because of that, there is good reason to believe that consumer prices have continued to trend higher.