Oil has dipped below $74; gold is around $1086 and the CRB is down 1%, showing that commodity prices are soft across the board this morning. China’s moves to tighten liquidity (raising reserve requirements and limiting lending via monthly quotas) are helping cool the market’s ardor for the reflation trade.

AUD/USD is near its lows for 2010, down to 0.8940 before a tiny bounce. USD/CAD is breaking out to the topside, trading now at 1.6665. Very formidable resistance at 1.0750 is the topside target for USD/CAD.