Australian and New Zealand Dollars Hit 15 Year High Against Yen

Stronger economic data from Australia has pushed both the Australian and New Zealand dollars to a 15 year high against the Japanese Yen.

Although the current account deficit was wider than expected, service sector PMI jumped from 52.8 to 56.1 in the month of May while building approvals increased by 8.2 percent in April. Taken together with the stronger company operating profits reported yesterday, there is a decent chance that GDP growth in the first quarter (which is due for release this evening) will beat expectations. The Reserve Bank of Australia is also set to announce an interest rate decision, but rates are not expected to be changed. This is should be a non-event because the RBA does not release a statement unless monetary policy is altered. The Canadian dollar weakened the most in three weeks ahead of IVEY PMI and building permits. The risk is skewed to the downside for both numbers. For a more detailed outlook on the Canadian dollar, see our special report (Canadian Dollar How Much More Can it Rise? ). New Zealand has commodity prices scheduled for release which could be moderately market moving ahead of tomorrow night?s RBNZ rate decision.