Rising commodity has been the story of the week, helping to take the Australian, New Zealand and Canadian dollars higher.
The Aussie rose to a 24 year high, putting itself within an arm’s reach of hitting parity against the US dollar. Rising inflationary pressures and stronger economic data leaves the RBA far closer to a rate hike than any of the other major central banks. We do not believe that they are ready to raise rates, but tighter monetary policy could be a final option. The lack of meaningful economic data next week leaves the action for the Canadian and New Zealand dollars. Canada will be releasing its Current Account balance and GDP while New Zealand will be reporting its trade balance.
