The Australian, New Zealand and Canadian dollars continued to fall as the US dollar rises and commodity prices decline.
The biggest loser was the New Zealand dollar which dropped 1.32 percent against the US dollar. This is expected given the overall weakness of the New Zealand economy. The only reason why the Kiwi has been appreciating over the past few days is US dollar weakness. Meanwhile the Bank of Canada released their monetary policy report. According to BoC Governor Dodge, inflation is expected to exceed the central bank’s target but interest rates are appropriate. His statement and bias is clearly neutral which means that for the time being, the central bank does not plan on altering interest rates. Foreign purchases of Canadian securities surged in May as investments in Canadian bonds increased by the largest amount in 12 months. On the calendar are the leading indicators and wholesale sales reports from Canada tomorrow and the import and export price indices from Australia this evening.