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Australian Dollar, New Zealand Dollar Gains Prove To Be Short-Lived, Canadian Dollar Could Falter On Friday
Thursday, 09 October 2008 22:21:23 GMT  |  Terri Belkas, Currency Strategist
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The Australian dollar and New Zealand dollar rallied during Thursday morning as signs of stabilization in the financial markets spurred buying of carry trades. However, a jump in volatility late in the day sent the Aussie and Kiwi plummeting, much like the Canadian dollar had done throughout the day.

Meanwhile, the Loonie faces event risk on Friday when the Canadian net employment change will be released. This figure is forecasted to rise by 10K and tends to have a huge impact on the Canadian dollar immediately after its 7:00 EDT release. However, Monday's release of Ivey PMI showed that the labor market conditions deteriorated as the employment component fell below 50. This has happened on two other occasions since December, both of which coincided with sharp declines in the net employment change. My fundamental bias for the Canadian dollar on Friday: bearish.

Check out Daily Fundamentals in its entirety for analysis and outlooks on the US dollar, euro, British pound, Japanese yen, and the commodity dollars.

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