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Risk returned to markets overnight in........>

CANADA
CANADA: Risk returned to markets overnight in hopes of a breakthrough in
US-China trade talks. Bank desks reported of very strong CADJPY demand which saw
the cross move back above Y82 to extended recovery highs of Y82.12. Next
resistance is seen at Y82.54/70 which represents the Dec 21 high & 61.8%
retracement of Y86.24-76.98. USDCAD further extended losses through C$1.33
having breached channel support at C$1.3487 last Friday (See MNI Analysis email
- USDCAD Breaks Channel Base Support - Jan 4 0901GMT). Rate touched pullback
lows of C$1.3268 and now opens a move toward the 100-dma & Dec 3 low at
C$1.3172/60. EURCAD comfortably holds below the 200-dma (C$1.5214) & C$1.52
level in early Europe. Next support at C$1.5121/16 from the 100-dma & Dec 17
low. While AUDCAD currently flirts with the 100-dma at C$0.9460, a close below
here opens the 50% fibo of C$0.9105-0.9784 at C$0.9445. 

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