Drop in Gold and Oil Prices Drives Australian, New Zealand and Canadian Dollars Lower

The Australian, New Zealand and Canadian dollars tanked today as speculators poured out of commodities.

Oil prices are down $6 a barrel while gold prices fell a whopping $38. The yellow metal is now below $1000 an ounce and the liquid gold (oil) is closing in on $100 a barrel. Australian economic data was slightly weaker than expected with the annual growth of dwelling starts rising only 2.4 percent. Canada reported a stronger than expected wholesale sales number, but that did not prevent USD/CAD from climbing breaking higher. Tomorrow we have leading indicators and international securities transactions, both of which we expect to be CAD negative.