The lack of volatility in the FX market is not only helping the really high yield emerging market pairs, but also putting a further bid in the AUD, CAD and NZD...
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Pepperstone
The lack of volatility in the FX market is not only helping the really high yield emerging market pairs, but also putting a further bid in the AUD, CAD and NZD (or bloc currencies). AUD/USD has broken the 61.8% retracement of the October to January sell-off at 0.9339 and while it is starting to get overbought could be eyeing the November 20 high of 0.9447 over the coming weeks. Shorting is ill advised and while a pullback will happen soon, this look likely to be shallow and well supported. It's worth remembering the Korean exports (released last week) grew 5.2% and they are a really useful guide to China's exports, as the correlation over the years is strong. The key risk to AUD longs here is the Fed minutes at 04:00 and I expect them to be hawkish
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![Chris Weston](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBb0J6IiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--ba12fe58138b9392b34a2faa2743bd52d9c18d6b/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJYW5CbkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--d4026b52d9aa7a676b3d70dbe31c85d930184392/kga08anp_400x400.jpg)
Highly accomplished financial markets professional, with experience at a number of top-tier global institutions on both the buy and sell-side. A natural communicator with a strong ability to analyse macro-economic trends, capital flows and market...
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![Chris Weston](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBb0J6IiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--ba12fe58138b9392b34a2faa2743bd52d9c18d6b/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJYW5CbkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--d4026b52d9aa7a676b3d70dbe31c85d930184392/kga08anp_400x400.jpg)
Highly accomplished financial markets professional, with experience at a number of top-tier global institutions on both the buy and sell-side. A natural communicator with a strong ability to analyse macro-economic trends, capital flows and market...