Momentum sustained most of the commodity pairs through Thursday. The kiwi dollar was by far the biggest mover for the day after RBNZ Governor Bollard forecasted New Zealand’s first rate cut sometime this year. Australia’s currency saw high volatility - yet no direction - once again.
The April trade deficit contracted to A$957 million for the smallest short-fall in 14 months. This positive change was accomplished through a 2.2 percent drop in imports and the largest jump in exports in nearly two years - altogether helping to validate the RBA’s forecast for terms of trade to grow 20 percent this year. Finally, the top event risk came from Canada. The May Ivey PMI and April building permits both hit 11-month highs, though both were undercut in their respective breakdowns. Tomorrow’s jobs report will be a top market mover.