Inflation in China is just right for commodities, it would appear. Not to hot to force a fast rate hike, not to cool to forecast a slide in demand…Just right to keep the trends in play.
The CRB is up 1.2% this morning and AUD/USD is up to 0.9930. USD/CAD is a shade lower, down around 1.0050 after a long stretch around 1.0100 last week.
Risk is on across the board, with equities well supported this morning also.
For AUD, expect profit-taking toward the 1.00 level should the rally extend, based on wide-spread talk to that effect late last week.