Australian and Canadian dollars Struggle to Rally

The Australian and Canadian dollars struggled to rally today despite strong gains in the New Zealand dollar. This price action is particularly interesting given the fact that there were solid gains in both AUD/JPY and CAD/JPY.

Canadian data was softer than expected with manufacturing shipments falling by 0.6 percent in the month of April. Australian data was mixed with consumer confidence falling but home sales rising. Echoing the overall strength of the economy, Treasurer Costello said that employment is strong and consumers are confident. Meanwhile New Zealand retail sales are due for release tonight. Expectations are low but given recent comments from the RBNZ, the risk is to the upside.