By DailyFX - NZDUSD.Commodities Rise Again.The Kiwi dollar remained bid on the session as commodity...

... demand remains healthy with
speculation underpinned by further near term demand. Although declines were
witnessed across the board, declines were limited as prices still retained their
lofty status. As a result, traders bid the New Zealand dollar in conjunction with
carry trade potential. Currently the spread remains at 300 basis points.

Fundamentals Cast Aside
Comparatively, the U.S. dollar lost strength on the session in light of positive
economic data. For the month, factory orders to the world's largest economy rose
2.5 percent compared with consensus estimates of a 2 percent rise and reversing the
decline seen in the previous period. Suggestive that the economy remains
underpinned in the wake of both Rita and Katrina, traders are already pricing in
further tightening of interest rates in the next two months. As a result, market
players are concerned the current bullish greenback momentum could fade in the near
term.

Rumorville
Bids reside at 0.6910/20 with offers hovering 0.6980/85. Subsequent stops are above
at 0.6970.

Technically Speaking
Little stands in way for the kiwi to continue a move higher. If today's high is
broken, an eventual push to the 61.8% fib at 0.6989 would be the first level to
pressure a bullish move. The 50% fib of the same monthly swing would be the first
brake on dollar bids with stronger support resting down at 0.6888.

AUDCAD

Battle Of The Commodities
With no scheduled economic release for either member of the pair, the market was
left to look at commodity prices for their positions, with ever volatile and
newsworthy crude prices catching traders' attention. Dipping below $65 per barrel
in trading today, loonie bulls took the news with a less than favorable tone.
Commodities account for nearly 35 percent of the countries exports and have carried
the economy through a period of soft domestic demand. While Australia benefits from
the cheaper energy prices, Canada's future of strong growth and aggressive interest
rate hikes may become suspect.

Technically Speaking
The strong move in the Aussie's favor pulled the pair through former resistance at
0.8940, but the 23.6% fib of the last loonie bullish swing tempered any more
aggressive bidding. While the near term support is relatively strong, resistance at
0.8815 will be harder to breach. The level has held for two years and a brake will
leave a loonie run unemcumbered.

EURCAD

Turkey Makes Its Bid For Membership
Turkey began its long, uphill battle to gain its entry into the illustrious European
Union yesterday, which presently consists of a trim 25 nations. Last minute
objections by both Cyprus and Austria, however, have nearly knocked them off track
before the ball even gets rolling. Both countries cast a doubtful eye on the
largely Muslim country with the average income of only a quarter of the average
Union member's. While admittance would be a drastic improvement for the hopeful,
the Union would be further watered down. The rocky start for Turkey offered euro
traders hope that the community will not be weighed down by another third-world
country, at least for a while.

Technically Speaking
Today's jump in the euro versus the loonie brings the pair to the upper band of a
very steep downward channel. If the euro can keep up with its strength, the next
level to eye would be around 1.4060 where former support is offering new resistance.
Looking at the longer time frame, the pair has made a month long plunge to fresh
3-year lows, so a continuation downwards is more like. Retesting of today's and
yesterday's lows around 1.2850 will be the next level for another round of euro
bids.


By DailyFX