Research from one of the big custody banks bears out the perceived move into riskier assets in recent sessions with their internal flows showing institutions buying AUD, CAD, NZD and NOK, all commodity-linked currencies. Expect those flows to intensify in the wake of Chinese data suggest growth there remains robust.
“Risk on” is the macro theme…
It is interesting to note that both AUD/USD and USD/CAD reached their extremes at the 15:00 GMT fixing, a process dominated by institutional investors. AUD/USD reached 0.9361 and USD/CAD fell to 1.0265 …