US dollar loses ground against the commodity currencies

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.

AUDUSD daily chart June 1

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.

Go to top