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Drop in Commodity Prices Hits AUD, NZD, CAD

Monday, 09 April 2007 21:22:35 GMT

Written by Kathy Lien, Chief Strategist
Commodity currencies are looking heavy and overextended despite the rise in the Australian dollar today.  Both the Aussie and Kiwi have been unable to rally beyond their swing highs and a break below today’s low would open the door for a test of critical support. 

Gold prices are lower, which is contributing to the weakness, but the bigger story today is the Canadian dollar.  Oil prices have been falling for the past 6 trading days and we are finally seeing a reaction in the Canadian dollar. With no CAD data on the calendar tomorrow, we could see an even further extension in today’s USD/CAD rally. 

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