USD set to retain a somewhat firmer tone, Yellen to back...

Usd/Cad to almost 1.2800 seems more related to media speculation that incoming US President Biden will take executive action to cancel the Keystone XL Pipeline permit. Meanwhile, mixed Chinese data has not helped the Aussie or Kiwi resist the advances of their US counterpart as the former reverses from just above 0.7700 towards 0.7660 and latter tests bids/support around 0.7100 in the run up to NZIER business sentiment for Q4 and December electronic card retail sales.

Comment:

CAD was firmer after the BoC rate decision, which left all policy settings (rates, guidance, QE) unchanged as expected, although there was some slight CAD strength in the aftermath as outside bets for a “micro-cut” were unwound and as it upgraded its growth forecasts somewhat. Governor Macklem in the press conference addressed the recent appreciation of the CAD, which is at 3-year highs, noting a continued appreciation of the loonie would be a risk and act as a headwind to its projections, although he did note the primary reason of recent strength is the depreciation of the greenback.