24 days ago • Posted by William Ramstein
Macro signals in commodity related currencies have been mixed
After rising sharply earlier in May, maybe because of mixed signals from the BoC, the Canadian Dollar hit a ceiling against the USD. On the other hand, the NZD has broken out above its prior trading range this week. The AUD is looking flat, but if the recent trend for softer iron ore prices keeps up, the AUD could head southwards. Given the importance of commodities to these economies, the hawkish signals from their respective central banks will sustain if high commodity prices continue.