Renewed demand for high yielding currencies as well as rebounding oil and gold prices have driven the Australian,New Zealand and Canadian dollars higher. Australian new home sales and construction work data was tepid, but that seemed to matter little to the currency market.
Instead traders revealed in higher oil prices after the larger than expected drop in crude inventories and in the market?s overall demand for yield. Over the next 24 hours, we are expecting a lot of data from these 3 countries. Australia will be reporting its current account figures, New Zealand has its money supply and business confidence data while Canada has industrial and raw material prices along with its current account balance; expect these currencies to be in play tomorrow. Meanwhile Australia and New Zealand could weather the US slowdown better than many people may think. The Baltic Exchange?s Dry Freight Index was once termed, the “Best Economic Indicator You?ve Never Heard Of” by Daniel Gross hit a record high today. This indicates that there continues to be huge demand for raw materials from countries like China and India. This could provide the support that these commodity rich countries need.