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Commodity Currencies Push Higher

October 1, 2020

Currencies

Yesterday’s session saw all three commodity currencies gain ground. The USD/CAD pair fell upon a better than expected GDP report. Meanwhile, both the AUD/USD and NZD/USD gained ground as well. The bottom might be in for now, with support lines holding firm in the short term.

The trend appears to be continuing in the early Asian session and there are still flows away from the USD and into the key commodity currencies. The fallout from the U.S. Presidential Debate seemed to be limited so far, with more risk-on flows.

The AUD/USD has claimed one key level at 0.7150 and is climbing towards 0.7200. Further movement will depend on the RBA next week, which will affect the AUD in the coming week’s sessions. A break out above 0.7200 would suggest the bullish trend back.

The NZD/USD pair is looking very similar but there is less resistance around at present. The main upside target looks to be 0.6700, which means the risk/reward is not bad at all currently.

The USD/CAD pushed lower yesterday and now the 1.3135 mark is the clear target to the downside. There is a lot of volatility at the moment, but there appears to be a slight reversal from what occurred last week.

The focus now will be on the U.S. jobs report both today and with tomorrow’s NFP release, so the USD might impact what is to come. The latest ADP numbers have already beaten expectations.

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