Commodity Dollars Dominate as ‘Risky’ Assets Rally Across the Board

The Australian dollar, New Zealand dollar, and Canadian dollar were easily the strongest of the major currencies on Thursday due to increased risk appetite, rather than fundamental forces. In fact, economic releases from Australia and Canada were disappointing, as the Australia’s employment change fell by a greater-than-expected 34,700 in March, pushing the unemployment rate up to a five-year high of 5.7 percent, while the Canadian employment change plunged by 61,300 during the same period, bringing the unemployment rate up to match the December 2001/January 2002 high of 8.00 percent. None of this stopped the Aussie and Loonie from testing their monthly highs against the US dollar, but traders should be sure to watch for either a break above or drop lower in the near-term.