… lending figures rose on the month.

Eco Data Disappointment
Conversely, leading short term declines on the Japanese yen side, the
eco watchers survey was released in line with previous results. The
current outlook was slightly more pessimistic given the survey
expectations of 52.2, printing a 50.7 reading. Not only were current
views disappointing to yen bulls, machine tool orders were equally
negative, rising only 0.8 percent against the previous 3.6 percent
spike. However, with the figure widely regarded as volatile, the
results beared less on the market in comparison to the watch survey.

Technically Speaking
Bouncing off of the 85.82 figure in the overnight, the cross currency
was bid after a bout of consolidation. Forming a support after a
decline from the textbook head and shoulders, the underlying broke
through upside ceilings at 86.01 and 86.35 with not even a flinch.
However, currently it seems to have halted above the 50 percent fib from
the 2-week move. Following previous price action, the underlying looks
to consolidate once again in a comfortable range between 86.83 and
86.59.

AUDCAD

Loonie Inflation Bulls
Comparable to its Aussie peer, the Canadian dollar witnessed some
bidding interest on the session as Bank of Canada Governor David Dodge
further suggested at near term rate hikes. The governor, speaking at a
luncheon in Montreal, stated that the current long term rate of
inflation was “well anchored” while the economy has grown to its
full potential ahead of schedule. As a result, to combat price
inflation in an expanding economy, rates will need to be adjusted in the
shorter term. Especially noted by the central bank was the job creation
in the month of October. For the month, 69,000 positions were created
completely crushing the 19,000 expected by economists. Price action was
subsequently contained with buying interest on both sides of the cross
currency.

Oil Resurgence
The Canadian denomination garnered strength earlier on as oil prices
witnessed a resurgence of interest. Tossing aside the 4.5 million
barrel weekly rise in the weekly inventory release, traders bid the
crude contract higher on the NYMEX as concerns over supply in the
Northeast resurfaced. However, with interest waning going into close,
the contract is likely to close below lending some near term weakness as
we enter the Asian session.

Technically Speaking
Trapped on the tug o war between the two major legs, the underlying
price action looks to be well contained in the near term. Providing
barriers are the 38.2 and 23.6 percent fib levels from the month's
move. With consolidation finitely defined, some upside potential
remains for the cross until the rise looks to be capped at the 50
percent fib at 0.8771.

EURAUD

Here We Go Again
Further selling in the euro single currency occurred on the session as
riots and violence continued in the nation of France for the thirteenth
day. The recent debacle has overshadowed hawkish rhetoric issued by the
central bankers in recent days along with positive economic data for the
German economic released this morning. According to officials, the
region's largest economy experienced a better than expected rise in
the trade surplus. Expected to rise to 13 billion euros, the surplus
added to 15 billion as imports fell by 1.2 percent against a stronger
export increase of 2.5 percent. However, disappointing was a dip in the
wholesale price index. Rising 1.7 percent for the month, the index
dipped 0.1 percent, countering some arguments by policy makers that
inflation is through and throughout the economy.

Carry Traders
With tumultuous times dominating much of the hawkish rhetoric issued by
policy makers, traders turned their focus, if not near term, on the
carry trade potential of the cross pair. At the current moment with the
RBA likely to shift once again to a tightening bias, traders are
regarding recent EBC comments as nothing more than further jaw boning in
the region and expecting a further widening of the rate differential
between the two economies. As a result, further selling looks to plague
the pair until hawkish statements can realistically materialize.

Technically Speaking
Further downside is in store for the pair, currently being driven by
momentum selling. However, testing the 1.5950 figure, a dead cat bounce
or temporary retracement is a possibility with upside tests at the 23.6
percent fib level an inevitable scenario in that situation. Rises look
to be capped by the 38.2 percent fib at 1.6079 in the short term.

Sending money abroad? Converting currency?