Research Team at Lloyds Bank, views that the commodity currencies are likely to remain under pressure vs the USD amid the current market environment.
Key Quotes
“Not only should the AUD and the CAD struggle due to their beta to market sentiment, the internal vulnerabilities in Australia and Canada suggest that these currencies should be underpressure. AUD and CAD short positioning having been cut back considerably over the past week and we think both currencies are vulnerable to a rebuilding of near-term easing expectations.
RBA Governor Stevens testifies in a parliamentary committee at the end of this week, while this past week’s soft reading on Canadian employment could continue to weigh on the CAD in coming days.”
(Market News Provided by FXstreet)