USD/CAD Nears 7 Month Lows after BoC Dodge Downplays Intervention Risk

The recent trend in the commodity currencies continued to drive trading as the Australian and New Zealand dollars extend their sell-offs while the Canadian dollar continues to strengthen.

The Reserve Bank of Australia is expected to release their monetary policy statement tonight. The futures curve is pricing in one rate hike this year, but this is not expected until the third quarter. The RBA statement will shed more light on whether they remain committed to a rate hike and the potential timing of one. The Canadian dollar is nearing its 7 month highs once again following comments from Bank of Canada Governor Dodge that the current level of the Canadian dollar does not necessitate intervention. Merger and acquisition flows are also fueling gains in the CAD with many resources hungry foreign companies snapping up Canadian firms. IVEY PMI is expected to drop significantly tomorrow, but CAD data loves to surprise to the upside.