All three of the major commodity currencies (the Australian, New Zealand and Canadian dollars) closed higher through Wednesday’s close thanks to a smattering of economic data and a general rebound in key commodities. The tide lifting all of the currencies was the rebound in crude prices – a proxy for the entire raw materials group.
Oil prices (WTI) rose for a third consecutive session and closed above $118/barrel as traders tuned into Hurricane Gustav working its way up through the Gulf of Mexico. So far, the advance has been relatively slow; but should there be any damage or delays to shipments and/or refining, $122 may once again be tested. From the economic front, the New Zealand dollar found its own bullish drive from the NBNZ business confidence report for August. The sentiment gauge marked a surprise improvement to a nine-month high as the sales outlook turned positive for the first time in months thanks to the pull back in raw material prices and falling easing interest rates. Looking out over the next 24 hours the Canadian current account balance and Australian investment numbers will be important.