The G10 FX market remains tentative with a quiet USD, while the AUD outperforms on hawkish RBA rhetoric and the CAD weakens ahead of trade talks. Geopolitics in the Middle East and softening global bond yields are the primary macro drivers.
Key Takeaways
- 1.The Canadian Dollar (CAD) is underperforming G10 peers as markets focus on upcoming US-Canada bilateral trade negotiations in DC.
- 2.The Australian Dollar (AUD) is outperforming following hawkish comments from RBA's Harper regarding the need for 'strong action' to anchor inflation.
- 3.Geopolitical focus remains on the US/Iran conflict and Middle East tensions, which are impacting sentiment and crude oil price action.
Table of Contents
- Analyst Team
- Overview
- CAD Soft Into Trade Talks As RBA Sees Need For 'Strong Action'
- USDCAD (1.3852)
- USDCAD short-term technicals: Neutral/bullish
- TODAY'S CALENDAR
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Authors
Shaun OsborneEric Theoret
Securities
USDCADUS 10-Year TreasuryWTI Crude OilXAU
Themes
Geopolitical TensionCentral Bank Policy DivergenceTrade Protectionism/Negotiation
Regions
North AmericaEuropeAsia PacificUnited StatesCanadaAustralia