The commodity currencies continued to perform extraordinary well today as the Canadian dollar hit another fresh multi-decade high against the US dollar.
Like the UK, more acquisition news is fueling the move in the Canadian dollar. GE Real Estate is said to have bought assets from Canada?s Dundee REIT for C$2.4 billion. There is no Canadian data until Wednesday which means that there is little standing in the way of further USD/CAD weakness. The Australian and New Zealand dollars are also up strongly thanks to solid Australian economic data. Company operating profit is up a whopping 7.6 percent in the first quarter while ANZ job advertisements were up 10 percent in the month of May. This suggests that GDP and employment, which are due out later this week, could also be firm. Before that, we have service sector PMI, building approvals and the current account due for release. With the AUD/USD trading not far from its May high, tonight?s data could trigger some profit taking before the more important RBA rate decision and GDP releases scheduled for Tuesday.