CAD & NOK Benefit From Another Round Of YtD Highs In Oil Futures, CAD CPI Eyed Later

The broader BBDXY is lower on the day but operates within the confines of yesterday’s range as participants look ahead to the raft of global central bank decisions due in the coming sessions.

• NOK finds itself towards the top of the G10 FX table after yesterday’s struggles, with European equities off lows and crude oil futures registering another fresh YtD high.
• USD/CAD breached an important support at C$1.3490, the Sep 1 low, on Monday. The breach of this level undermines the recent bullish theme and suggests potential for a deeper pullback near-term. Today's sell-off has resulted in a break of support at C$1.3475, the 50-day EMA. This strengthens a bearish threat and opens C$1.3394, a Fibonacci retracement. Initial firm resistance is at C$1.3593, the Sep 12 high. A breach would be a positive development. Domestic risk is eyed later today, with the bid in oil helping CAD in the background.
• USD/CNH trades around CNH7.30, with Chinese capital outflow concerns noted, while state-backed media outlets flag analyst views re: the potential for yuan stability/strength.
• A mix of modest revisions to/unchanged final Eurozone CPI readings did little for the EUR.
• Canadian CPI data headlines the broader economic docket today, while ECB Executive Board member Elderson will speak at a banking union conference. BoC’s Kozicki will also speak.