Despite higher commodity prices, the Canadian, Australian and New Zealand dollars gave back some of their gains as high yielding currencies came under the pressure of falling risk appetite.
Economic data from the commodity countries was mixed. Australia reported stronger leading indicators and higher job vacancies while New Zealand reported a less than expected improvement in the current account deficit. This divergence in economic activity drove the Australian dollar to a 6 year high against the New Zealand dollar. New Zealand GDP and the trade balance are due for release this evening. Growth is expected to contract given the sharp deterioration in consumer spending last quarter. Trade should also be weak given the drop in business PMI.