Commodity currencies are moving higher and so are commodity currencies. We have already seen NZD/USD rise above 0.66 on milk prices, extending previous gains.
And now we also had the Australian and Canadian dollars making it through round levels, only to be rejected. Are these false breaks a preview to the real ones or do they mark the end of the recovery?
CAD
WTI Crude close to $50 and Brent is even higher. This was more than enough to beat weak Canadian data. After a slide to 1.3040, USD/CAD extended its falls below the post Fed bottom of 1.3012 and hit a new low of 1.2992.
Yet from there, the pair moved back up to 1.3022.
Support awaits at 1.2950, followed by 1.2860. Resistance is at 1.31.
AUD
The Australian dollar enjoyed the bounce in copper prices. After they dipped below $5000 a ton, this important metal saw fresh demand and moved to top $5200.
AUD/USD extended its post RBA gains and temporarily rose above 0.72. Also here, this didn’t last. The post Fed high of 0.7270 is key resistance. Support awaits at 0.71.
