After rallying for five straight trading days, the Australian and New Zealand dollars have given back their gains on the heels of commodity price weakness. Both gold and oil prices are lower today, allowing New Zealand dollar traders to overlook a rise in money supply and focus more on the drop in building permits.
The Canadian dollar on the other hand completely shrugged off the $3 drop in oil prices and the larger decline in industrial and raw material prices. The downtrend in USD/CAD is strong and traders really want to push the currency pair below 95 cents. Canada is so flush with cash that they are cutting the federal sales and corporate income tax. Meanwhile GDP is due for release tomorrow, we are expecting an improvement given the jump in retail sales.