Broad dollar strength has pushed the Australian, New Zealand and Canadian dollars lower. The Australian trade deficit was slightly wider than expected as exports slow and imports grow. Like the rest of the world, oil is the primary culprit.
With Australia now back to running a trade deficit, second quarter growth remain soft. In the first quarter, the Australian economy actually grew by the slowest pace in 2 years. Interestingly enough, commodity prices were unchanged in the month of June. The annualized pace of growth still remains near record highs. Canada is the only country with any meaningful economic data tomorrow. The IVEY PMI report is due for release. Although a dip is expected, the index should remain near its 11 months highs.
