The commodity currencies have been mixed today with the Australian dollar slipping on the back of softer gold prices and the Canadian dollar rising on stronger oil prices.
The fact that gold is falling tells us that risk appetite is improving because gold is often times seen as a safe haven during times of a recession. The move in the comm. dollars conflicted with economic data because Australian import prices increased more than expected while Canadian leading indicators and wholesale sales both deteriorated. In the week ahead, the Bank of Canada and the Reserve Bank of New Zealand will be conducting monetary policy meetings. The BoC is expected to cut interest rates by 50bp while the RBNZ is expected to leave them unchanged. Aside from the rate decisions, Canada will also be releasing their retail sales report while Australia will be reporting producer price growth.
