Prime Minister Harper says his country is not yet out of recession. Now, he says, is also not the time for political instability. Harper leads a minority government, so there is always the risk of no-confidence vote and fresh elections.
USD/CAD is approaching 1.10 as the reflation trade suffers a setback today. Oil is down over 4% on the session, for example.
Also potentially undermining CAD is talk that Canadian bank CIBC has approached Allied Irish Bank regarding CIBC taking a minority stake.
AUD/USD is weak as well, down below 0.8300 on the same day the RBA governor signaled higher rates sooner than expected. Specs are getting badly singed in that one. 0.8270 is next support as it just broke the 61.8% retracement of the 0.8180/0.8477 rally.
