The Australian, New Zealand and Canadian dollars are all up strongly today despite the drop in both oil and gold prices.
New Zealand labor costs increased more than expected in the second quarter, which suggests that the labor market remains tight. Actual employment data will be released later this week. Australian ANZ job advertisements fell by 0.5 percent, but the market is still looking for a nice rebound in jobs last month. Before we get that data however, we have the Reserve Bank of Australia interest rate decision. The market is pricing in a quarter point rate hike tomorrow night. When the central bank raises rates, they also release a statement. The high level of inflation suggests that the RBA could still raise rates again this year, but they will probably pause given global economic conditions.