The Australian, New Zealand and Canadian dollars headed back towards their multi-decade highs on the back of a bounce in the commodity markets and renewed demand for high yielding currencies.
Canadian and New Zealand economic data supported the move, but Australian data did not. Exemplifying the strength of the economy were Canadian housing starts which hit the highest level since 1979 in September. New Zealand business confidence also improved from -37 to -27, but Australian business confidence dropped to an 8 month low. Consumer confidence from Australia is expected next. The price action of all three commodity currencies supports further gains.
Written by Kathy Lien, Chief Currency Strategist for DailyFX.com