The Australian dollar rallied today on the combination of US dollar weakness and hawkish comments from the Reserve Bank of Australia. The central bank raised interest rates to 6.50 percent last night, which was widely expected but their degree of hawkishness hinted at the possibility of another rate hike by the end of the year.
This helped to rally both the Australian and New Zealand dollars. Employment reports are expected from both countries tonight; the labor market should continue to remain tight. The Canadian dollar also strengthened on the back of US dollar weakness. They have housing market reports due out tomorrow.