A rebound in risk trades and raw materials underpinned commodity currencies Tuesday, we evaluate whether or not it will last. The New Zealand dollar was the top performer and continued to rise early in Asia-Pacific trading on Wheeler comments while the euro lagged. Japanese retail sales are up next. 5 Premium trades remain in progress. A new update will be issued on Wednesday ahead of the Fed statement.
It was Turnaround Tuesday in most markets. Beaten down assets like stocks and commodities rebounded in a squeeze higher. After weeks of non-stop selling, oil bounced nearly $2 from the mid-April lows and that sent USD/CAD down to 1.2915 from 1.3015 in US trading.