Good news for the Canadian and Australian dollars, while their New Zealand counterpart falls to the wayside

Canadian dollar markets recovered well on Tuesday, shrugging off poor manufacturing sales data on Monday to post gains across the board. In contrast to this, New Zealand dollar markets suffered throughout Tuesday following the release of worse-than-expected Global Dairy Trade price index figures. With the dairy market forming a large portion of New Zealand exports, the local currency is highly sensitive to any decline in the price of dairy products.

Australian dollar prices improved throughout Tuesday as the Reserve Bank of Australia forecast that inflation within the country would be consistent with their target over the next one to two years. Although spare capacity within the economy is likely to persist for some time, this positive news was well received by investors.

A quiet day across the markets lies ahead, although ZEW economic sentiment data from China is likely to cause interest.

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