Australian, New Zealand Dollars Gain, Outpaced by the Canadian Dollar on Surprisingly Strong Canadian Retail Sales
The
Australian dollar and New Zealand dollar both rocketed higher at the
start of the US trading session amidst broad declines in the greenback,
though these commodity currencies finished the day essentially
unchanged from Monday.
Moves in the Canadian dollar were a bit
more dramatic, though, as the release of Canadian spending figures
proved to be much stronger than expected. Indeed, retail sales jumped
1.1 percent in September, nearly three times as much as economists had forecasted.
This is something we noted potential for yesterday, given the solid
employment numbers we’ve seen over the past three months and 1.5
percent gain in wholesale sales. While this does bode well for Q3 GDP
results, the Bank of Canada is still anticipated to cut rates by 25
basis points during their next meeting on December 9, as the financial crisis and economic slowdown in the US threatens to weigh on growth in Canada as well.
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