Commodity FX delight in April seasonals
April is the month with some of the strongest seasonal patterns of the year. The commodity currencies all tend to rip.
It's the best month of the year for the Australian and Canadian dollars, by a longshot. It's frightening to chase the trades with both hitting retracement extremes but that trend is your seasonal friend.
If you look at positioning, the market is still betting heavily against CAD and oil. Look for painful squeeze in both.
Looking at AUD/USD today, the prognosis is good. It was beaten up in the heavy wave of US dollar buying after non-farm payrolls but after touching 0.7600, it's bounced all the way back to 0.7670.
- Top five forex seasonals April 2016: #3 dollar doldrums
- Top five forex seasonals April 2016: #4 a headache for Draghi
- Top five forex seasonals April 2016: #5 oil it up
