The US dollar has been under some broad pressure since New York rolled in. There’s a bid in bonds and S&P 500 futures are up 20 points so the backdrop is conducive to USD selling.

Taking advantage are the commodity currencies with both AUD and CAD at session highs.

AUD/USD is up 43 pips to start the new month. I noted earlier this week that June is a positive seasonal month for the Australian dollar. The gains today to 0.7219 mark the best levels since May 4.

CAD is benefiting from a rebound in oil above $116. Crude was knocked through $114 yesterday on a report of fracturing or a potential removal of Russia from OPEC+. Today a report said OPEC’s technical committee had trimmed the 2022 oil market surplus forecast, which could be a precursor to pumping more. Though with a surplus forecast, you’d still expect them to show restraint.

In any case, the loonie is benefiting now but it’s all about the Bank of Canada decision at 10 am ET.