Canadian and Australian Dollars Continue to Lose Ground

With commodity prices basically unchanged, fundamentals have finally taken hold of the commodity currencies. The Canadian and Australian dollars are both softer on the heels of weaker than expected Australian employment numbers and Canadian housing market data.

Both housing starts and house prices deteriorated. The New Zealand dollar was the only commodity currency to rally as the unemployment rate fell to another record low. Tomorrow there will be no Australian or New Zealand data released but Canada will be reporting their trade balance for the month of September. The recent strength of the CAD is expected to drive the surplus lower.