The commodity dollars softened over the course of the day, though it was the Canadian dollar that took the biggest hit as the high-yielding Australian and New Zealand dollars made a meager come back in the afternoon.
Australian producer prices were stronger than expected, signaling that inflation pressures may be looming in the pipeline. However, CPI is anticipated to ease back upon release later in the week. On Tuesday, Canadian retail sales are estimated to have bounced back in August, but a plunge in wholesale sales during the same period indicates some potential for a disappointing result. The RBNZ meets on Wednesday, and with the New Zealand dollar looking ready to plunge, the bank’s decision to leave rates steady could spark a sell-off.