The Canadian, Australian and New Zealand dollars have all recovered against the greenback.
This sudden rally can be attributed to a readjustment of investor risk appetite, as economic remains mixed. New Zealand posted their Building Permits and Business Confidence figures, with both numbers falling short of expectations. These releases successfully foreshadow worsening situation in the housing market along with possibility of a rise in unemployment. Australia released their Private Sector Credit figures, which came in line with expectations, boosted by business and housing loans. Despite a rise in housing loans, expectations for Building Approval figures due out tomorrow remain to be pessimistic. Meanwhile Canada’s Industrial Product Price and Raw Material Price Index showed gains, due to rising commodity prices but GDP figures tanked to -0.2%, below market expectations.
