Continued Weakness in the Australian, New Zealand and Canadian Dollars

The Australian, New Zealand and Canadian dollars continued to sell-off today despite the lack of meaningful economic data

This was due entirely to dollar strength and general liquidation out of high yielding currencies. Next week, the commodity currencies could finally get a life of their own thanks to a heavy economic calendar. We are expecting the minutes from the last Reserve Bank of Australia monetary policy meeting, the New Zealand current account balance, third quarter GDP and Canadian consumer prices. We expect most of these event risks to be negative for the commodity currencies which goes in the line with the current technical outlook for these pairs. Support has been broken which suggests further losses.