AUD and NZD at the highs of the day
Tighter US oil inventories have led to a quick turnaround in energy prices and that's spilled over into commodity currencies. The positive risk tone and flatish trading in bonds is also helping.
The New Zealand dollar has been red hot recently -- particularly against the yen -- and is flirting with 0.7200 in its sixth consecutive day of gains.
Other levels to watch are in USD/CAD, which is having a look at yesterday's low, which was also the lowest since July.
Risk trades have had a nice run so at some point this will have to take a pause -- sooner rather than later. The commodities market though is showing some real resilience. Natural gas in Europe is up 5% today despite Putin's comments about easing the crunch. Saudi Arabia also indicated that no new oil is coming. Meanwhile, the metals market continues to tighten on inventory drawdowns and smelter curbs.
All that paints a nice picture for CAD and AUD in particular. If China adds some stimulus and the US passes infrastructure, it could be off to the races.
