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USDCAD TECHS

Consolidation Mode But Remains Bearish

AUDUSD TECHS

Fails To Hold Onto Thursday’s High

US

'Big Tech' Bill Goes To Senate

COMMODITIES

Oil Up For Fifth Week On Supply Disruption, Geopolitics

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  • The dollar index fell 0.45% on Wednesday, turning negative on the week, largely resulting from strong performances in CNH, AUD and the Euro.
  • Commodity and risk-tied currencies remain optimistic, evident by the near 1% rallies in both AUDJPY and EURJPY.
  • With the greenback weakness, AUDUSD has further distanced itself from major noted support below the 0.7000 mark and is now closing in on the 20-day EMA, at 0.7187. A clear breach of this average would strengthen the current bull phase.
  • EURUSD has bounced well from the day’s low at 1.1267 and is now trading towards the upper bound of last week’s range. Key short-term resistance is unchanged at 1.1383, Nov 30 high where a break would signal scope for a stronger corrective bounce and open 1.1514, Nov 5 high.
  • USDCAD had trended lower ahead of the Bank of Canada rate announcement, however, a marginally dovish-to-expectations statement prompted a 50-pip bounce for the pair, in the face of dollar weakness.
  • GBP came under pressure following reports that the Government are set to announce further covid restrictions. ‘Plan B’ is widely expected to have a working from home which spooked GBPUSD to fresh 2021 lows below 1.3200 to a low print of 1.3163. The pair has since bounced amid a weaker dollar, however, remains lower on the day with EURGBP up 0.77%.
  • EURGBP’s recent breach of 0.8544, 76.4% of the Nov 5 - 22 sell-off has prompted an extension towards a key short-term resistance at 0.8595, the Nov 5 high.
  • Chinese CPI/PPI scheduled overnight, before a light European and US calendar ahead of Friday’s US CPI data. BOC’s Gravelle is due to speak about the Economic Progress Report with a Q&A expected.