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AUD, CAD Supported by Strong Commodity Backdrop

FOREX
  • The backdrop of stronger oil prices continues to lend support to commodity tied currencies, putting CAD and AUD at the top of the G10 pile. AUD/USD trades just below the $0.72 handle - a level last crossed in early May for the pair. Progress above here would open the 100-dma at $0.7231.
  • The greenback is at the weaker side of the table, with the USD Index in negative territory. So far, the Index is getting support from the 50-dma at 101.39, which could prove key headed through the holiday-thinned week and the May jobs report due on Friday.
  • National German CPI takes focus going forward, with the regional inflation data released throughout the morning pointing to a possible upside surprise for the national print. The release continues to add to argument for a rate rise from the ECB at the upcoming meetings, helping add some support to the single currency and placing core bond markets under pressure.
  • Memorial Day holidays in the US will keep markets closed and should weigh on activity and price action across the Monday session, although a speech from Fed's Waller and ECB's Nagel could draw some attention.

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