Weakness in commodities, risk aversion, and broad US dollar buying has weighed heavily on the high-yielding commodity dollars, including AUD/USD and NZD/USD.
The Canadian dollar has not been immune either as the currency fell to 11-year lows versus the greenback on Thursday. Furthermore, declines for the Loonie may not be over yet as Canadian labor market data will be released. The Statistics Canada release of the net employment change is forecasted to rise by 5,000 while the unemployment rate is anticipated to hold at 6.2 percent. However, the employment component of the latest Ivey PMI report fell below 50 for the first time since December, indicating contraction. The last time this happened, the government release of the net employment change was surprisingly weak, and I think there is some potential for a similar disappointment on Friday. As a result, [B]my fundamental bias for the Canadian dollar on Friday is bearish.[/B]