Canadian, Australian, New Zealand Dollars Holds Onto Gains

The Canadian, Australian and New Zealand dollars all rebounded strongly today. The CAD rallied throughout the European and US trading session despite the reversal in oil prices. Most of this movement was related to flow since there was no economic data released and comments from Finance Minister Flaherty last night was bearish.

He said Canada was seeing a little spill over from the US sub-prime mortgage crisis. The Australian and New Zealand dollars are also stronger thanks to the sharp increase in Australian retail sales last month and a nice rise in the manufacturing PMI index. Originally expected to increase by 1.0 percent, sales rose 1.4 percent. The Australian trade deficit however came under the weight of the stronger Aussie as exports decreased while imports increased. There are no further releases from Canada, Australia, and New Zealand until Friday.