Australian, New Zealand and Canadian Dollars Hit by Carry Trade Liquidation

The Australian, New Zealand and Canadian dollars all fell under the weight of liquidation. Even the Australian dollar, which has been supported by strong economic data gave back some of its prior day?s gains.

There is no Australian data next week, but the RBNZ will be meeting to decide on interest rates so expect decent volatility in the New Zealand dollar. PPI and retail sales are also due for releases. Over in Canada, housing starts, trade balance and manufacturing data are due out. Unlike the US, Canada reported stronger than expected employment numbers today; 23k jobs were added in the month of August, which compares to the 11k rise in July.

Written by Kathy Lien, Chief Currency Strategist of