Not only did we have mixed price action in the commodity currencies once again, but also mixed economic data.
he Australian and New Zealand dollars are up strongly today thanks to a sharp rise in Australian employment. With another 26k people added onto Australian payrolls, the unemployment rate fell to a 34 year low of 4.1 percent. The strength of the Australian economy and the tightness of the labor market explain why the Reserve Bank of Australia is the only major central bank that is continuing to raise interest rates. New Zealand reported a decline in business PMI and food prices, but these numbers are not very market moving. Instead, Kiwi traders are holding out for tonight’s retail sales report. Unlike the US, Canada’s trade surplus fell to a 9 year low, driving the Canadian dollar back towards parity.