MUFG Research adopts a more cautious bias on commodity currencies in the near-term.
"Our commodity analyst maintains a broad-based bullish for outlook for commodity prices. However, 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," MUFG notes.
"In these circumstances, we are adopting a more cautious outlook for commodity related currencies in the near-term. USD/CAD breaking above 1.3000 and AUD/USD below 0.7000 have provided further bearish technical signals for commodity currency performance," MUFG adds.