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Commodity crumble leaves NOK, CAD exposed.....>

FOREX
FOREX: Commodity crumble leaves NOK, CAD exposed
-Another dour day for commodity markets (and particularly energy), with WTI
crude futures extending losses below $50/bbl to touch levels not seen since
mid-2017. Historical support at $42.05/bbl is now in view and the oil downside
has left CAD and NOK particularly exposed this morning, which both sit near the
bottom of the G10 currency pile Tuesday. Technicians eyed the rally through
9.8370 in EUR/NOK as crucial, with bulls turning their attention to the 2017
(and 10-year) high of 9.9939.
-NZD is the standout performer on better-than-expected domestic data, with ANZ
business confidence and activity outlook figures both improving and underpinning
today's rally. A close above the 200-dma at $0.6842 will be needed to extend any
rally. The woeful Monday session for equities carried through to Tuesday,
prompting broad-based JPY strength, with USD/JPY below the 100-dma ahead of the
NY crossover.
-Data is somewhat sparse Tuesday, with US housing starts and building permits
the highlight. Focus remains on Wednesday's Fed rate decision.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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