Oil up but off the high
The USDCAD has pushed to new session lows and in the process took out the low from last week at the 1.3253. It also trades below the low from November 9th at 1.3263. In the process, the pair trades at the lowest level since October 21. However, we are seeing a rebound after the break and the pair is back up testing that November 9th lows. A move above and there may be a corrective rebound on the failed break.
Oil prices are higher today with WTI crude at $51.86 up $0.18 or 0.35%. The hiigh today reached $52.42. The low has come in at $51.04. Last week OPEC announced they would cut oil output. But in the meantime, Reuters is reporting that November oil output rose by 370,000 BPM MoM to 34.19 million BPD. This is the highest in recent history. The rise was led by Angola, Nigeria, Libya and Iraq. Saudi output was down on refinery maintenance and reduced direct crude burning.
Output cuts are as good as the members adhering to the cuts. It is still too early to judge the merits of the announced deal last week, but if history repeats itself, the cuts are hard to be maintained.
Other commodity currencies are trading also trading at extremes (USD low).
The AUDUSD has moved above the Friday high at 0.7467. The underside of broken trend line comes in at 0.7487. The highs from last week were all able to stall ahead of the 0.7500 level which is looking like a tough level to crack.
For the NZDUSD, the pair is recovering back toward unchanged after the surprise announcement that PM Key would be stepping down. That close came in at 0.7132. The price is trading around 0.7124 currently.
