Commodity Currencies Weaker Across the Board on Falling Oil and Gold Prices

The Commodity Currencies are weaker across the board as gold and oil prices both fall sharply on the day. Despite reporting a stronger leading index of economic activity, the Australian dollar was the biggest percentage loser in the currency market today. New Zealand’s surprise interest rate hike has many people in the markets speculating that the central bank has delivered their rate hike of this cycle. The fall in both the New Zealand and Australian dollars suggest that these traders could be anticipating a similar move by the Reserve Bank of Australia.

The Bank of Canada also released their monetary policy report today. Dodge is expected to retire in January. The central bank remains concerned about inflation, but wary US growth. This indicates that even though the central bank is hawkish, they will be very conservative with delivering any interest rate hikes.