Despite the strong rally in the Japanese Yen crosses, the Australian and Canadian dollars failed to join the party.
Commodity weakened as Australian business confidence deteriorated in the month of January. It seems that the Reserve Bank’s commitment to continue raising interest rates and the slowdown in global growth is cutting into the optimism of Australian companies. We suspect that tomorrow’s Australian consumer confidence numbers will suffer the same fate. New Zealand producer prices also declined last quarter as the growth of both input and output prices decelerated.