Despite very weak US economic data, the greenback actually strengthened against the Australian, New Zealand and Canadian dollars. Softer oil and gold prices can be partially blamed for the underperformance, but the primary reason why the commodity currencies are lower is because they have been hit by another wave of carry trade liquidation. Australian service sector PMI actually increased last month, so if anything, economic data should favor AUD/USD strength. The Canadian dollar on the other hand is suffering from the weakest Canadian IVEY PMI since December 2001. We only expect Canadian economic data to get worse. The employment component dropped significantly last month, which suggests that we could see a similar deterioration in the CAD employment numbers next Friday.