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CAD Underperforms Post US CPI Miss, AUDCAD Uptrend Continues

  • USDCAD has held a tight range around ~1.354 since falling 60 pips on the US CPI downside surprise as markets await the next major risk event in tomorrow’s FOMC.
  • In doing so it cleared the range seen since last week’s US ISM beat but hasn’t tested initial support at 1.3493 (former trendline).
  • Ties to the US see typical CAD underperformance on the crosses for such a scenario, notably down 1% vs the AUD on the day despite a partial recovery off extremes. AUDCAD earlier breaching 0.93 saw it the highest since April, up 8% from mid-Oct lows prior to the BoC’s downshift on Oct 26 and further moving towards the end of the hiking cycle.

Source: Bloomberg

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