5:00 PM (NZT) After initially the AUD seeing a little pressure from the CAD, the turnaround in sentiment came quickly. As we have seen for a third time now in the last six weeks, the reversal of a risk averse sentiment can be particularly sharp. The AUD demand was driven by a number of factors. Better than expected economic data in the UK, Europe and the US was back up with a surprisingly strong Spanish bond auction. This sparked the demand for risk assets and the rush for the exit of risk aversion trades. The high at 1.0450 was brief to say the least as the strong Canadian retail sales number coincided with the ECB 3year funding operation details. The larger than expected demand for the ECB funds have spooked the market again, as it illustrates the need for banking funding in Europe for back to survive. Look for further movement within the familiar 1.0250-1.0450 range throughout the festive season.
 
The current interbank midrate is:                                                            AUDCAD 1.0350                              
                                                               
The interbank range so far this week to date has been:                 AUDCAD 1.0253 – 1.0450