CANADA: USDCAD Climbing Ahead Of BoC Decision
Sep-07 12:59
- A recent rise in USDCAD gathers pace at 1.3195 (+0.32%) as CAD continues to modestly outperform Antipodeans amidst USD strength.
- It earlier stopped just a few pips shy of testing initial resistance at 1.3208 (Sep 1 high), with any dovish slant from the BoC potentially opening key resistance at 1.3224 (Jul 14 highs) and late 2020 levels after that.
- On the flip side, support is seen at 1.3075 (Sep 2 low) but could take a notable hawkish surprise to sustain a move lower, with the complication of Mester (’22 voter) speaking at the same time.
- Little impetus from international trade data, with a larger than expected trade surplus in July offset by a small downward revision to June. Volumes data indicated a net trade boost from a GDP perspective but with weaker implications for domestic demand (exports +1.7%, imports -1.4%).
Source: Bloomberg
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AUD: Extending gains across the board
Aug-08 12:57
- Main mover remains the AUD today, albeit on a quieter session.
- EURAUD has now broker the 1.4600 handle, with next support seen at 1.45628.
- AUD also lead versus the Dollar G10, up 1.10%, helped by the Risk On tone.
- AUDUSD test immediate resistance right here at 0.6990 High Aug 4.
- A clear break above the latter, sees 0.7047/53 High Aug 1 / 61.8% of the Jun 3 - Jul 14 downleg.
FRANCE T-BILL AUCTION RESULTS: 13/22/48-week BTFs
Aug-08 12:56
| Type | 13-week BTF | 22-week BTF | 48-week BTF |
| Maturity | Nov 9, 2023 | Jan 11, 2023 | Jul 12, 2023 |
| Amount | E2.696bln | E1.671bln | E1.397bln |
| Target | E2.3-2.7bln | E1.3-1.7bln | E1.0-1.4bln |
| Previous | E2.999bln | E1.666bln | E1.299bln |
| Avg yield | 0.053% | 0.177% | 0.545% |
| Previous | 0.001% | 0.180% | 0.453% |
| Bid-to-cover | 3.63x | 3.74x | 3.64x |
| Previous | 2.4x | 2.99x | 3.96x |
| Previous date | Aug 01, 2022 | Aug 01, 2022 | Aug 01, 2022 |
US-CHINA: No Sign Of Sino-US Thaw Following Pelosi Taiwan Trip
Aug-08 12:50
Speaking at an event in South Africa, US Secretary of State Antony Blinken has criticised Beijing's decision sever lines of communication with Washington in response to US Speaker of the House of Representatives Nancy Pelosi's (D-CA) trip to Taiwan.
- On Beijing's withdrawn from a bilateral climate dialogue: "It is deeply unfortunate that China, for now, has decided to stop that engagement."
- Blinken: "China ceasing cooperation with the United States on climate change is punishing the entire world."
- According to local journalist Eric Bates, Blinken said the move will adversely affect African countries, as the US and China have the highest emissions.
- On security and military communication, Blinken said: "What I’m hearing from countries around the region and countries around the world is that they expect us to maintain our channels of communication. They respect – expect us to responsibly manage our differences. That’s what the United States is determined to do."
- Blinken on the Ukraine war: "If we allow a big country to bully a smaller one, to invade it, it will be 'open season' around the world."
- Blinken's remarks come as concern increases in the West that Beijing may pursue an economic embargo of Taiwan as a punitive response to Pelosi's Taiwan trip.
- Stanley Chao, China business and geopolitical analyst: “In a doomsday scenario, China could possibly sanction Taiwanese company Foxconn, the world’s largest contract manufacturer and the largest private employer in China, resulting in billions of dollars of lost revenue, thousands of Taiwanese jobs lost, and double-digit percentage losses on Taiwan’s annual GDP.”
