The Canadian dollar continued to sell-off today despite the fact that crude oil futures closed at a record high. Concerns about inventory and potential demand has weighed on the liquid commodity.
The lack of reaction in the Canadian dollar suggest that the market is far more concerned about the contagion affect of weaker US growth. GDP fell short of expectations in the month of May despite stronger retail sales. Canadian companies are also beginning to report weaker earnings as a direct result of the strong loonie. Meanwhile the New Zealand dollar is down sharply after the foreign minister indicated that the currency has room to fall another 27 percent. Whenever a price targets is given, the markets are never happy. Australian retail sales is due for release tonight and they are expected to rebound sharply after the drop in May.