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Risk Appetite Gets Early Boost, Pushes AUD, CAD to New Highs

  • Risk moving well following the cash equity open - as noted above the cash NASDAQ has opened back above the pre-sell off levels, erasing the sharp decline posted Wednesday (supposedly options-tied selling, profit-taking) to narrow the gap with the all time high.
  • Solid equity open underpinning gains across risk proxy currencies, with CAD and AUD both moving to new daily highs and helping to extend the winning streak in AUD/USD (pair has printed higher highs and higher lows for eight consecutive sessions) to the best levels since July.
  • Similarly for USD/CAD, this bearish break looks convincing, with today's weakness putting the pair firmly through the bear trigger of 1.3283 to narrow the gap with July's lows of 1.3093 further out. Note today's move has spilt the USD/CAD 14-day RSI further into technically oversold territory - with this gauge now the lowest since May'21 after the downleg from ~1.25 to ~1.20.
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