Commodity Dollars Struggles To Hold Onto Latest Gains

The Australian Dollar, New Zealand Dollar, and Canadian Dollar all struggled to hold on to Wednesday’s gains amidst choppy trading, as commodities like gold and oil ended the day lower.

However, gold has now fallen for 9 of the past 10 trading days, suggesting that a bounce may be in store for the metal and commodity dollars alike. Meanwhile, New Zealand retail sales were better than expected in June, as the index jumped 0.9 percent. However, the Q2 reading that excludes inflation fell 1.5 percent, marking the second consecutive quarter of contraction. Nevertheless, [B]in the longer-term, there is still significant downside risk for Aussie, Kiwi, and the Loonie[/B]. Consequently, rallies in these currencies should be seen as selling opportunities.