The evolution of the Trumpian trade warring era and its impact on the global economy will continue to have directional influence on USD-CAD given the Canadian Dollar's standing as a commodity currency
. USD-CAD has support at 1.3270-73.
ETFS Bullish USD vs Commodity Currency
Basket Securities (DE000A12Z3T0)
The new currency pairs include exotic pairs, crosses with the Swiss Franc and crosses with the Australian Dollar, a major commodity currency
The Australian dollar rose 0.6 percent to $1.0345, holding firm after climbing roughly 0.9 percent on Thursday for its biggest one-day gain in a month as traders trimmed bets against the commodity currency
The Australian dollar - a high-yielding and commodity currency
that has benefited from the global economic recovery - followed a similar pattern by dropping against the dollar at 2 am.
The relative strength in the commodity currency
has been impressive and shows no signs of let up even after breaking psychological barriers by 0.9000.
Sterling-priced gold, for instance, is only at its highest since April, while bullion in commodity currency
the Australian dollar is struggling to revisit recent two-month highs.
As a result, the commodity currency
may extend its rally throughout the week however as economists project employment to rise for the second consecutive month in September however, housing starts are forecasted to fall to 148.0K from a revised reading of 150.5K in August, and the data may drag on the exchange as investors weigh the prospects for a sustainable recovery in Canada.
The Australian Dollar on the other hand has underperformed, with the commodity currency
weighed down by the weaker than expected retail sales number.
Some of the weakness in commodities is attributed to month-end profit-taking but sentiment is also emerging that commodity and commodity currency
gains of late have been over optimistic on the global recovery.
The Canadian dollar rose to a fresh trend high against the greenback, driven by higher oil prices paired with the rise in market sentiment, and the commodity currency
may continue to advance over the following week as traders raise their appetite for higher risk/reward investments.
However, it is essential to realize that this correlation to sentiment has produced far more restrained appreciation against many of the commodity currency
's other major counterparts.