Commodity currencies hanging by a thread

Author: Adam Button | Category: News

The AUD/USD and USD/CAD charts are barely holding on. It’s probably a bit early to jump in here but a break below 0.9700 in AUD/USD or above 1.0400 in USD/CAD could trigger another 100-150 pip push.

They probably won’t break until the US gets going. It’s tough to jump in ahead of month/quarter end but here’s something to consider: hedge funds report positions at quarter end and they will be loath to show an overexposure to stocks. If so, they will shift into bonds in what looks like a flight to quality and would hurt AUD and CAD. That switch would then reverse on Monday.

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookies