Australian Dollar Hits 16 Year High, New Zealand Dollar Stages Strong Recovery

It is clear that the market is still hungry for yield because the New Zealand dollar staged a very strong recovery today while the Australian dollar hit a 16 year high despite weaker consumer confidence. Australian employment figures are due for release this evening.

Improvements in the employment component of manufacturing and service sector PMI suggest that job growth in the month of June could be strong. The Canadian dollar also recuperated the majority of its intraday losses. Commodity prices were steady so they are not likely to have had much of an impact on the currencies. Instead, merger and acquisition demand continues to fuel buying of the Loonie. The trade balance is due for release tomorrow. With manufacturing shipments and wholesale sales down, a weaker number is expected.