Archived IMT (2009.05.27)

AUD & CAD are on a tear as the risk appetite theme morphs into the sell-USD story to the benefit of commodities. Both currencies at fresh 7-month highs vs USD, with USDCAD carrying the technical underpinnings for further declines towards 1.08. AUDUSD approaches the 0.7960 target--50% rertracement of the move from the all-time high to the 0.6094 low. We reiterate our favour for prolonged gains in these currencies vs USD, as well as the case for $1.47 in EURUSD. Gold pushes towards $956, while silver eyes the $15.24 target from the current 14.81.