Canadian Dollar Hits 31 Year High, Australian Dollar at 18 Year High

Commodity currencies performed extremely well today with the Canadian dollar hitting a 31 year high and the Australian dollar rising to an 18 year high.

Oil reversed intraday, but gold prices have run up to a 28 year high of $750 an ounce. The Canadian dollar is trading almost exclusively off of momentum. GDP was softer than expected in the month of July while the price of industrial product and raw materials abated. This should have been bearish for the Canadian dollar but rising commodity prices and a weaker US dollar actually drove the loonie higher. IVEY PMI and Employment are due out next week so expect the Canadian to continue to receive big focus. As for the Australian dollar, the rally has now extended for the ninth consecutive trading day thanks to the surge in gold prices. Australia has retail sales and the RBA interest rate announcement next week. Interest rates are not expected to be changed and spending is expected to pare back after a big jump in July. As for New Zealand, the kiwi rose strongly after solid GDP numbers. There is no data due out next week.

Written by Kathy Lien, Chief Currency Strategist of