Via Lloyds morning note (UK time Tuesday) on metals and impacts on AUD, CAD, and more

(in summary, bolding mine)

  • Chinese data overnight showed their trade surplus grew, with imports somewhat lower than expected, which has seen USDCNH drop sharply to new lows for the year and test support in the 6.70 region.
  • We get China's latest inflation data overnight. What will be interesting is how raw material prices react, as Copper, Aluminium and Iron Ore have been strong for a number of weeks now, but particularly so yesterday.
  • From this measure alone AUDUSD looks a little out-of-line as we reach important support in the 0.7900-0.7850 region.
  • USDCAD's correction phase has also moved closer to resistance in the 1.2750-1.2850 region, where we look for a lower high,
  • while Oil prices remain in a consolidation phase awaiting OPEC's latest output deal compliance update.