Amongst other analyses, including the yen and AUD/USD, Greg Gibbs, Founder, Analyst, & PM at Amplifying Global FX Capital Pty Ltd, an Australian financial services company, noted that CAD has shot up in recent sessions as the NAFTA cloud has been lifted.
Key Quotes:
“These may not be great levels to buy CAD, but it could continue to strengthen as inflation pressure builds and oil prices rise to new highs. EUR has dropped on Italian budget risks. Eurozone core inflation slipped in September and economic survey data remain subdued. Event risk is too high to want to buy EUR yet.
USD/JPY may be up on higher US yields and some relief in EM markets. JPY may also be weaker in line with the CNY and higher oil prices.
However, USD/JPY is approaching key resistance, the Nikkei is relatively strong, and Japanese inflation pressure may be higher than widely perceived.
The fall in AUD despite high energy prices is helping support the Australian trade balance, government balance and overall economy.
The Australian economy has out-performed official forecasts in the first half of the year and supports the case that the next move in rates will be higher. However, risks emanating from China, US trade policy, EM markets and Australia’s housing market continue to undermine confidence in the AUD.”
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