Canada is in the Limelight Next Week, New Zealand Retail Sales Beat Expectations

Despite stronger economic data, the Canadian and New Zealand dollars weakened while the Australian dollar strengthened.

In Canada, manufacturing shipments increased a whopping 2 percent in April, compared to the market’s call for a 0.4 percent drop. New Zealand retail sales also rose for the first time in 3 months by 1 percent thanks to higher spending on cars and tires. Australia on the other hand had no economic data but RBA Governor Stevens did warn that the current level of interest rates, which is at a 12 year high, is essential to restrain inflation. In the week ahead, the Canadian dollar is one of the main focuses of the currency market as consumer prices, leading indicators and retail sales are due for release. New Zealand only has service sector PMI while Australia has the minutes from this month’s RBA meeting and leading indicators due for release.