The comm bloc gave back all of its gains from Tuesday and then some. Fading yield appetite and economic data proved to be a bigger draw than volatile commodity markets. Initially, the yield-laden Australian and New Zealand dollars were sent tumbling as a market-wide rise in risk aversion pushed each more than 100 points lower against its US counterpart.
The kiwi’s decline accelerated after reporting a 1.3 percent drop in employment through the first quarter – the sharpest contraction in 19 years. Looking ahead, the Australian currency is looking at significant event risk in the ever market moving employment change. Loonie traders will have housing starts data to work with.