Despite a sharp sell-off in commodity prices, the Australian and New Zealand dollars extended their gains while the Canadian dollar recovered from Thursday’s losses.
Economic data was mixed with a contraction in manufacturing activity in Australia offset by a sharp rise in the commodity price index. Canada also reported a jump in industrial product prices but slower growth in raw material prices. The Commodity Currencies will be in play next week with the Reserve Bank of Australia announcing an interest rate decision, New Zealand and Canada reporting employment figures and Canada releasing IVEY PMI. A strong labor market and rising inflationary pressures is expected to push the RBA to raise interest rates to 7 percent. If they raise rates, they would be the last ones standing.