Commodity backed currencies worried by possible US taper

Elsewhere, on Friday we saw the Australian dollar hit its longest stretch of weekly declines since 1985. Over recent week’s policy makers from the Reserve Bank of Australia have been aggressively talking the currency down, with the general sentiment being that it is overvalued. An overvalued currency could pose problems for the outlook of the export-reliant Antipodean economy. We saw the Canadian dollar trade at near three-year lows following an announcement from the governor of the central bank that they would not be raising interest rates for ‘quite some time’ amid speculation that the Federal Reserve will be slowing stimulus in the near future. Looking forward to this week, we have a monetary policy meeting minutes from the Reserve Bank of Australia overnight tonight, as well as a statement from the governor tomorrow. We have manufacturing, inflation, and retails sales figures out of Canada. Out of New Zealand we have business confidence and GDP figures, and out of Japan we have a monetary policy statement. Get in touch with your trader for live rates