Fxrenew
Nasdaq - Potential Reingagement of Long BiasWith Crude Oil stabilizing, Italy's Technocrat Cottarelli extending a hand to MS5 and Lega, US/NKorea meeting today and G7 starting in Whistler, the market has calmed down and risk assets have been bought overnight.
There is potential for a breakout through yesterday's high and 7000 again in Nasdaq.
USDCAD Bullish Bias Still In PlayUS Yields continue to support the US Dollar, along with uncertainty aboard (namely in EU).
We still have some event risk due on Cad as FinMin Morneau is set to announce what the
govt intends to do with the Transcanada pipeline.
Main hypothesis (via BBG) is that the govt will buy and build the expansion and sell once it’s complete.
EURAUD - Short Bias still in playA combination of RBA tone and supportive Chinese data, alongside stabilizing risk-appetite, is keeping AUD buoyant.
We like the odds of further AUD appreciation in the coming week, especially vs EURO which may continue to suffer
on recent Italian political shenanigans.
AUDNZD Poised for further upsideThe Aussie dollar's ability to bounce despite yesterday's risk-off move is encouraging for bulls. Market positioning could be supportive, with IMM data showing largest net AUD/USD short since early February 2016. With commodities rising and a gentile pace of rate hikes from the FED (priced in) Aud may continue to benefit vs. NZD which has seen some fairly cautious commentary from the RBNZ recently.