The Commodity Bloc took top honors on an incredibly volatile day of trade, posting large gains against the safe-haven US Dollar and Japanese Yen on improvements in financial market risk sentiment. Canadian Dollar bulls were out in full force on early crude oil futures rallies, and a later pullback in the NYMEX-traded contract had seemingly little effect on the CAD. Only the post-FOMC US Dollar rally halted USDCAD tumbles, but sharp retracements in the US Dollar meant that the currency pair finished almost squarely at the day’s lows. The Australian and New Zealand currencies were similarly bid on the impressive S&P 500 recovery. Yet it serves to note that the S&P and NZDUSD both finished notably off of intraday peaks—leaving very short-term momentum to the downside. Limited Commodity Bloc event risk suggests that the Loonie, Aussie, and Kiwi will continue to trade off of broader financial market moves. It remains critical to watch whether the S&P 500 and other key assets can break their recently choppy trading ranges.
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