The Australian dollar hit a fresh 24 year high at the open of the Asian trading session, but those gains were quickly erased following weaker Australian and New Zealand economic data.
Imports decreased 3.0 percent in the month of April, reflecting the softer demand for external goods by Australians. The New Zealand dollar on the other hand is suffering from yet another piece of disappointing economic data. The service sector PMI index slipped from 50.8 to 48.9 in the month of April, indicating that activity is now contracting. Last week, we saw a decline in retail sales and based upon the latest the drop in the employment component of the PMI report, the labor market and domestic demand should remain weak. The Canadian dollar on the other hand was the only currency that managed to strengthen against the greenback today. There was no economic data released, but we do expect stronger Canadian CPI on Wednesday.
