Canadian Dollar in Play on Tuesday

The Canadian dollar will be in play tomorrow with consumer prices, leading indicators and retail sales due for release. The economic data is expected to be mixed with economists calling for an increase in consumer prices and leading indicators, but a decrease in retail sales.

The price action of the Canadian dollar today suggests that traders may actually be positioning for stronger numbers. The Canadian government has been out in force trying to calm the financial markets. Canadian Finance Minister Flaherty said today that the country is strong enough to get through the temporary impact of the global market?s re-pricing of risk; we hope this is true. Meanwhile the Australian dollar is up strongly today while the New Zealand dollar trailed behind due to the drop in New Zealand visitor arrivals and producer prices.

[B]Written by Kathy Lien, Chief Currency Strategist[/B]