After an impressive bullish run from the com block, there was finally a break in the rally at the week’s end as risk aversion led traders to ease off the high risk, high yield currencies.
The docket was limited to the fourth quarter Canadian current account which printed slightly worse than expected with the gauge’s first deficit in nine years. The fundamental docket is fully loaded next for all three currencies. The RBNZ rate decision will top New Zealand risk. The Aussie dollar is ready to accept another RBA rate hike, as well as a retail sales, quarterly current account and fourth quarter GDP reports. Finally, the Canadian docket is loaded with the greatest risk as the Ivey PMI, fourth quarter growth and employment numbers will join an expected BoC rate cut due Tuesday.