Tsys have marginally richened in recent dealing, the USD sits a touch weaker and e-minis have firmed off session lows to sit 0.05% firmer. This leaves cash tsys flat to 1bp richer across the major benchmarks, light bull steepening is apparent. TYU3 deals at 113-17, +0-05+, a touch off the top of the 0-04+ range.
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A strong rally in USDCAD extended Friday, tilting the pair to a new weekly high at 1.3532. This has eased recent bearish pressure. The pair has topped the 50-day EMA, at 1.3518. A clear break of this level would be seen as a short-term bullish development and signal scope for a climb towards resistance at 1.3668, the Apr 28 high. Key support lies at 1.3302, the Apr 14 low, where a break is required to reinstate a bearish theme.
AUDUSD’s previous positive tone faded further Friday. This week’s test of key resistance at 0.6806, Apr 14 high, however, reinforces a bullish theme. A clear break of this level would strengthen the case for bulls and open 0.6861, a Fibonacci retracement. On the downside, a continuation lower would threaten the bullish theme and expose 0.6640, the May 4 low. Key support lies at 0.6565, the Mar 10 low.