The return of risk appetite has helped the Australian and New Zealand dollars extend their gains against the US dollar.
Economic data has also been supportive with the New Zealand trade numbers beating expectations and Australian private sector credit holding steady. Gold and oil prices are lower but only marginally. Although we remain bullish the Australian and New Zealand dollars, it is important to mention that the Australian dollar is nearing the top of its 3 month range while the New Zealand dollar is bumping up against the top of its 4 month trading range. The Canadian dollar on the other hand is back above parity. There was no major catalyst since GDP was right in line with expectations. Also Finance Minister Flaherty was relatively optimistic when he said that even though the Canadian economy is expected to slow, they are in a better place than other members of the G7. Raw material and industrial product prices are due for release tomorrow.