USD/CAD rebounds higher after 1.3400 holds. What's going on with commodity FX today?
USD/CAD shrugs off strong ADP employment report
USD/CAD fell as low as 1.3401 today but couldn't get through the figure and has bounced all the way to 1.3465.
The jump highlights an interesting divergence in FX today. Risk trades are surging, oil is higher and most commodities have climbed yet the commodity currencies are all lower. In fact, AUD and NZD are the worst-performing majors.
Some analysts are pointing to gold and yuan weakness but you would think that wouldn't be limited to the commodity currencies.
Ultimately, this move doesn't make much sense to me but it argues for caution more broadly.
Update: A reader points out that iron ore prices have also been surging in what should be a positive development, especially for AUD.