Further Weakness in Commodity Currencies?

The Australian and Canadian dollars sold off on the back of softer gold and oil prices.

A report that gasoline supplies in the US were stronger than expected put an end to the five day rally in crude. Canadian data was also weaker than expected. Even though leading indicators were stronger, wholesale sales dropped by 3.1 percent, which suggest that we could see weaker retail sales tomorrow. Australian data was actually stronger, with an increase in leading indicators. The New Zealand dollar was the only commodity currency to rally today and that has spurred rumors of potential intervention by the Reserve Bank of New Zealand tonight if the Kiwi does not weaken first on rising risk aversion.