The Australian, New Zealand and Canadian dollars are weaker across the board despite slightly higher gold prices. The recent rallies in commodity currencies have become very overextended which makes today’s correction hardly a surprise.
There was no economic data released from Canada, but Australia reported a drop in consumer confidence for the month of October, improvement in investment lending and home loans in the month of August. The housing market in New Zealand on the other hand is not faring as well with sales of houses in New Zealand falling by the most in more than 9 years. New Zealand business PMI is due for release tonight along with Canadian international merchandise trade balance and new house prices tomorrow. For the time being, the uptrend in all three pairs is intact.
Written by Kathy Lien, Chief Currency Strategist for DailyFX.com