MNI BRIEF: Inflation Risks Now Shifted To Downside-BOE Ramsden

MNI: Goolsbee Says Stalled Inflation Means Wait Before Moving

MNI China Daily Summary: Friday, April 19

MNI BRIEF: China Hog Market More Balanced In Q2 - Ministry

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: BAKER HUGHES US RIG COUNT 619; OIL RIGS 511; GAS RIGS 106

EZ/UK Bond Supply Calendar: EU, UK Synd W/C 22 Apr, BoE APF Mon

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

AUD and CAD Extend Recovery Amid Bolstered Risk Sentiment

FOREX
  • A second wave of positive sentiment across global markets lent further support to commodity-tied currencies such as the Australian dollar and the Canadian dollar.
  • AUD led G10 gains with AUDUSD distancing itself further from the November 2020 lows around 0.6990. As well as bolstered sentiment and yesterday’s PBOC easing, some analysts have interpreted the latest RBA statement through a hawkish lens which may have extended the Aussie’s bounce.
  • AUDUSD is up 0.92%, trading at 0.7115 as of writing. Clearance of last Friday’s high at 0.7099 suggests there may be scope for a stronger correction, opening 0.7194, the 20-day EMA.
  • Similarly, USDCAD (-0.85%) has breached short-term support at 1.2714, suggesting a deeper sell-off towards the 50-day EMA at 1.2597 could be on the cards.
  • The Norwegian krone has also extended on Monday’s gains amid the sharp bounce back in crude futures despite the announcement that the government will re-introduce additional measures to limit the spread of COVID-19.
  • Despite AUD and CAD gains against the greenback, the dollar index still traded in marginally positive territory. Largely down to a soft Euro, euro crosses made some impressive moves to the downside that saw EURAUD and EURCAD fall over 1%.
  • EURUSD itself made a push towards recent lows following a break of 1.1267. The broader trend remains bearish and key short-term resistance has been defined at 1.1383, Nov 30 high. Moving average studies remain in bear mode and the bear trigger resides at 1.1186/85.
  • Tomorrow’s main event risk will be the Bank of Canada decision/statement. Elsewhere there may be comments from RBA’s Lowe as well as JOLTS data from the U.S.
Energy BulletsCommodities
Energy BulletsCommodities

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.