Citi discusses AUD and CAD outlook and maintains a tactical bullish bias against the USD, Asia EM, and safe havens (JPY, CHF & Gold).
"AUD: NAB Business Confidence comes in slightly weaker but there is little reaction from AUD as the risk -on mood dominates with real money accounts seen buying AUD amid the broadly positive market sentiment for risk. This also suggests a degree of tactical outperformance against its peer NZD, Asia EM FX (CNH, SGD etc) and safe havens (JPY, CHF, Gold)," Citi notes.
"CAD: Canadian housing starts for August beat expectations at 226.6k vs consensus for 212.5k and prior 222.5k. Canadian building permits data for July also posts a strong beat at 3%MoM vs 2% expected with the prior print also revised higher. As with AUD, a degree of tactical outperformance is seen vs NZD, Asia EM FX (CNH, SGD etc) and safe havens (JPY, CHF and Gold)," Citi adds.