It has been an amazing week for Australian, Canadian and New Zealand dollar traders with the Australian dollar hitting a fresh 23 year high and the Canadian dollar hitting a new 31 year high on a near daily basis.
The strength of the trend in these three currency pairs is a testament to how much more money is made following the trends in the currency markets than trying to fight it. The main reasons why these currencies have been doing so well is due to the rise in commodity prices; just today, oil prices hit a new record high. The Canadian dollar will be in play next week with the Bank of Canada interest rate decision, leading indicators and consumer prices on the calendar. We are expecting bearish numbers for the loonie, but will need to see USD/CAD bottom first before attempting to buy it. The only pieces of data of consequence for the AUD and NZD are Australian import and export prices and New Zealand consumer prices.
Written by Kathy Lien, Chief Currency Strategist for DailyFX.com