Australian Dollar Hits 18 Year High, Inflation Up Next for Commodity Currencies

The Australian dollar rallied for the sixth consecutive trading day and hit a new 18 year high despite the lack of any economic data. This suggests that the market?s risk seeking appetite remains strong, especially since AUD/JPY also hit a new high.

Unlike the Australian dollar, the New Zealand dollar accelerated due to the combination of stronger New Zealand retail sales and weaker US retail sales. This divergence could lead to more gains in the NZD/USD. The Canadian dollar continues to hover near its 30 year highs following the hawkish statement earlier this week. Looking ahead, inflation will be the focus for all three commodity currencies.