Commodity Prices Drive Commodity Currencies Lower

The Australian, New Zealand and Canadian dollars are all weaker today. Even though carry traders have no reason to abandon their short yen positions, the market?s overall dollar bullishness has sent some of those traders bailing out of long AUD/USD and NZD/USD trades.

With no meaningful data released from these 3 countries, the commodity currencies followed commodity prices lower. Canadian leading indicators are due for release tomorrow. The overall improvements in the economy and the continual stock market rally should keep the index at relatively lofty levels. New Zealand will be releasing its trade balance tomorrow and we expect the strong kiwi to weigh on exports.