Dollar Snaps Back Ahead Of Retail Sales

All three of the commodity currencies fell sharply on Thursday. Job growth in Australia slowed in the month of June, reflecting the consequences of lockdown. Virus cases are also on the rise, forcing new restrictions in Melbourne. Earlier this week, the lockdown in Sydney was extended by another two weeks. These restrictions will slow the recovery and put the Reserve Bank of Australia further behind in the line for tightening. The New Zealand dollar which enjoyed strong post RBNZ gains also fell sharply but a bounce is possible on CPI tonight. Chances are the central bank decided to the cease asset purchases because inflation is hot. Meanwhile, USD/CAD rose to its strongest level in 2 months. The Canadian dollar completely shrugged off the Bank of Canada’s reduction in asset purchases in favor of falling oil prices.

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