There is no trade call for the session. Ahead we have German ZEW figures, but aside from that the London session is relatively light.
Commodity-linked currencies have remained supported after yesterday’s rally which was caused by a recovery in the price of crude due to reduced supply from Kuwait. The Canadian dollar has rallied 230 pips against the US dollar since gapping lower after the weekend. CADJPY has rallied nearly 250 pips from yesterday’s lows, as the yen depreciates alongside moves highers in stocks. The Nikkei is up over 3%.
The Kiwi has benefited from the moves in commodities, now testing the 70 handle, which is its highest level since June 2015.
The RBA Minutes from the April 5 meeting were released during the Asia-Pacific session. They did not contain any new dovish information and therefore the AUD has been supported, also helped by a move higher in iron ore. The Aussie is up 40 pips on the day and 155 pips from yesterday’s lows. Although the April 5 RBA statement said there is scope to ease policy further if required, this is unlikely to occur unless Q1 CPI misses estimates, due on April 27.
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