AUD/CAD short was the best trade
It’s rate to see commodity currencies on opposite ends of the leaderboard. And it’s equally rare to see a commodity currency at the top of the leaderboard in a week when the S&P 500 fell 6%.
It all underscores just how impressive the past week was for the Canadian dollar. Despite the headwinds in the bigger picture, it was a driven higher by three things:
- Oil was up more than 6% on the week
- Good signals on NAFTA negotiations
- High Canadian CPI on Friday
On the flipside, the Australian and New Zealand dollars were at the bottom of the pack. AUD/CAD isn’t a chart I look at often but the pair has fallen in 7 straight days after a nice run to start the month. It’s now resting just above the convergence of the 100-day and 200-day moving averages.