Commodity currencies remain vulnerable to further correction lower in near-term – MUFG

Are commodity currencies starting to lose some of their shine? Economists at MUFG Bank are adopting a more cautious outlook for commodity-related currencies in the near-term.

Building fears over a sharper slowdown in global growth

“We could be at a tipping point where a further move higher in prices could now be viewed as less supportive for commodity-related currencies in so far as they serve to reinforce fears over a sharper slowdown in global growth ahead.” 

“USD/CAD breaking above 1.3000 and AUD/USD below 0.7000 would provide further bearish technical signals.”