Oil prices rose above $115 a barrel for the first time ever, driving the Canadian, Australian and New Zealand dollars higher. For the past few weeks, the Canadian dollar has bucked its correlation with oil, but the latest rise in prices has been too much for loonie traders to handle.
Consumer prices are due for release tomorrow, but that may not matter much if oil prices continue to rise. Even though Australian economic data was weaker than expected, the rise in gold prices and the 200 point rally in US stocks have led the Aussie and Kiwi higher. Australia reported their Westpac Leading Index figures, which contracted for the third month, as businesses become pessimistic about the future, as access to funding continues to decline, in light of tighter credit markets. Looking ahead, Australia is set to report their import and export price index figures, which are expected to report cheery figures. New Zealand did not have any releases today, but investors remain optimistic as oil prices continue to hit new highs.
