• AUD/USD -0.6%
• USD/CAD +0.4%
• AUD/NZD -0.7%

AUD/USD

Cross Selling Pushes Aussie Lower: Aussie bids were taken to the downside forcing the major lower through the New York open at 0.7268.  Early in the session, sellers entered on stronger cross related selling forcing the pair through to the 0.7238 session low.   Related short positioning involved AUDNZD lots as the cross fell through the 1.1685 overnight lows following a stronger Kiwi retail sales figure.  Adding to Aussie capital flows was a rather large AUDGBP dumped into the market overnight.  Estimates of the size neared A$800 million.  Subsequently, promising U.S. retail sales figures added to the Aussie bearish bias as sales figures rose past consensus estimates.  For the month, retail sales climbed 0.6 percent on improved employment and earnings prospects.  The climb followed a 0.8 percent decline seen in the previous month with the ex-auto component gaining a healthy 0.4 percent.  With data particularly good, further speculation boosted greenback positions on expectations of another 25 basis point rate hike come May 10th.  Consumer confidence marks also contributed according to the University of Michigan.  With no economic data planned for the Aussie economy, traders look to keep to the wayside till next week ahead of the long holiday weekend.

Rumorville: Aussie enthusiasts reside below at 0.7235 and 0.7240 on a pullback of todayââ,¬â"¢s action.  However, moving into the Asian session, further selling looks to keep the underlying spot in a tight range with heavy offers coming in at 0.7290 and 0.7295.  Further selling resides above protecting the even figure.

USD/CAD

Loonie Sells On Dour Data: Poor Canadian data was reason enough to spark selling in the underlying major as manufacturing shipments declined 2.2 percent on the month.  Comparably, estimates were for a modest rise of 0.5 percent.  Subsequent selling pressure boosted the price action through stops to 1.1500 as additional dollar short covering took the pair higher on a near term technical bottom.  Commodity enthusiasts joined on the loonie short wagon as oil contracts traded lower ahead of the holiday weekend.  May contracts on the New York Mercantile Exchange were 57 cents lower at $68.05 as EIA reports noted a rise in crude inventories.  Ultimately, further upside potential remains should the momentum be able to take the 1.1550 near term resistance ceiling.

Rumorville: Bids are heavy at the 1.1495-1.1505 figures with comparable offers at the 1.1535 and above resistance at 1.1555/60.

AUD/NZD

Kiwi Retail Sales Soars Past Consensus: Bidding in the Kiwi dollar boosted the cross pair lower on the session following promising retail sales figures.  Opening at the 0.6168 figure, NZDUSD soared higher as the monthââ,¬â"¢s sales report bolted past consensus climbing 1.9 percent on the month.  The figure reflects the highest rise in two years for the month and lends to heightened speculation over next weekââ,¬â"¢s consumer price index report.  Should the report be higher, it would signal a potential consideration on an interest rate adjustment.  As a result, speculators keeping to interest rate sentiment, quickly bid the cross higher tripping stops at 0.6180, 0.6200 and 0.6220. Kiwi cross buying countered Aussie cross selling and added to the dayââ,¬â"¢s climb as notable bids were placed in NZDJPY on the 73.00 support and EUR/NZD at 1.9600.  Further action in the cross pair looks limited as expectations are for a quiet day tomorrow.

Rumorville: Selling pressure on the NZDUSD looks to crimp further cross gains with offers at 0.6210 and 0.6220.  Comparably, bids look to counter at 0.6150 with stops below that level.

Richard Lee is a Currency Strategist at FXCM.