Canadian Dollar Hits 30 Year Highs Ahead of Central Bank Rate Decision

The Canadian dollar hit a new 30 year high thanks to the combination of strong economic data and higher oil prices. After two months of weak hiring, Canadian companies added 34.8k jobs onto their payrolls in the month of June.

The country continues to enjoy the tightest labor market in years. Despite a strong currency, the economy remains strong which is why the Bank of Canada is widely expected to lift interest rates next week. Whether they will retain their hawkish bias is more of a question. Aside from the rate announcement, the trade balance is also due for release. If the strong currency were to have some detrimental impact on the country, it would be on trade. The Australian dollar is also higher thanks to rising gold prices. Business confidence, employment and consumer confidence are due for release next week. Meanwhile the New Zealand dollar has struggled to rally for the past four days. Retail sales and business PMI are the only pieces of New Zealand data of consequence next week. Stronger numbers will add fuel to carry trades.