Higher Commodity Prices Failed to Lift the Canadian, Australian and New Zealand Dolla

Both commodity prices and the stock market have closed today, but that has failed to translate into strength for the Canadian, Australian and New Zealand dollars.

This may be partially due to weaker New Zealand consumer prices and moderately dovish minutes from the latest Reserve Bank of Australia monetary policy meeting. Although prices are rising globally, it appears the strength of the NZD in the first quarter has appeared to offset much of that rise. The RBA believes that moderating demand should help to lower inflationary pressures which mean that they have no plans to alter interest rates in response to the latest inflationary pressures. The relationship between oil prices and the Canadian dollar has been weak as of late and for that reason, the CAD actually weakened despite record oil prices.