Wednesday, February 13, 2008

Twist of Fate as Canadian Dollar Rallies While Australian and New Zealand Dollars Retrace

The Australian and New Zealand dollars failed to participate in today’s Japanese carry trade rally.

This was partly due to Kiwi bearish news and the expectations for tonight’s Australian employment numbers. Starting with New Zealand, Finance Minister Cullen warned that the slowdown in the housing market was sharper than expected. Combined with the recent drought, he projects a slowdown in growth. Home sales, food price and manufacturing PMI were all weaker than expected, adding to the Kiwi’s slide. In Australia, employment numbers are due for release in a few hours. The recent decline in business confidence suggests that the Australian labor market will continue weaken. Meanwhile, the Canadian dollar rebounded despite the lack of economic data. The trade balance is due for release tomorrow and we expect the recent slowdown in US growth to hurt Canadian exports.

By: William Winch

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William Winch is a Business Growth Specialist whose mission is helping people expand and explode their home-based businesses without breaking the bank. A former High School and College Business Educator and Counselor, he mentors from his home office in Rochester, NY. If you are interested in learning how to explode and expand your home-based business, you can contact William by visiting his website at www.thefreemlmpowerreport.com or by calling him directly at (585) 234-5283.


Source: http://www.dailyfx.com/story/currency/aud_fundamen! tals/Twi st_of_Fate_as_Canadian_1202942374822.html?engine=rss&keyword=article
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