USD/CAD has edged higher in early.....>

DOLLAR-CANADA: USD/CAD has edged higher in early Asia-Pac dealing, last

C$1.3121, as softer than exp. Australian core CPI data, as well as slowing

official Chinese PMI readings, weighs on the commodity-linked FX space . 

- The pair was driven by shifts in risk appetite in the early part of Tuesday's

session, slumping to the day's lows at C$1.3101, before broader USD strength

pushed it to session highs of C$1.3147. The latter move was largely erased

towards the end of the day, as broader commodity currency strength played out. 

- Bulls keep an eye on the Oct 26 high at C$1.3159. Bears look for a break below

yesterday's low of C$1.3101 before challenging the 100-DMA at C$1.3076. 

- Tuesday saw The Bank of Canada's top two officials (Poloz & Wilkins) continue

to play down the financial market's hawkish interpretation of the central bank's

decision to drop its "gradual" wording in its communication about future policy,

noting that getting to the neutral rate won't be a "rapid" process. 

- Focus this week falls on the release of Canadian GDP today and labour mkt data

on Friday. Elsewhere, BoC's Poloz & Wilkins will speak to the Senate today,

while BoC's Schembri & Lane are due to give remarks in Ottawa on Thursday.