The Commodity Currencies are all weaker across the board on the back of softer economic data and lower gold and oil prices. Australian consumer prices increased by only 0.1 percent in the first quarter, which was much lower than the markets 0.6 percent consensus. Canadian leading indicators also increased by only 0.4 percent compared to the markets 0.5 percent consensus. On top of that, the Bank of Canada left interest rates unchanged today at 4.25 percent.
Comments from the central bank was a tad more hawkish than the prior statement as the policy making committee indicated that there was a slight tilt to the upside in inflation risks. Even though this decision was in line with expectations, the Canadian dollar weakened because some traders were looking for even more hawkish rhetoric. Looking ahead, Australian and Canadian markets are closed for ANZAC day, leaving the next big event on the calendar to Wednesday afternoon, when the Reserve Bank of New Zealand announces their interest rate decision.