In the midst of a big week for the USD, we cannot overlook major news for the Canadian dollar. BOC will come out with their monetary policy report tomorrow along with their overnight rate, which will probably maintain at 0.25%. CAD pairs are some of the hardest movers today which is probably due to the anticipation of tomorrow's news and rising oil prices.
The loonie looks stronger than some others, but it is still early in the week, and AUD and USD still have news to report throughout the week. In the longer term though, Canada's jobless rate is very high at 7.8%, 3.6% inflation, and weak GDP of 0.3% leads me to believe that the loonie is not a long term bullish play. Although they have a smaller inflation rate than the US, Canada's GDP is nothing notable compared to the US's GDP growth rate q/q of 6.4%. Australia's employment change is expected to be a mere 19K versus its last month's report of 115K, and unemployment is expected to remain unchanged at 5.1%. The Bank of Japan is set to release their monetary policy report this Thursday while the Japanese government gears up for giving out more stimulus, although the liberal democratic party is calling for an extra 30 trillion yen. This could help the yen in the short term, but overall, Canada's economy remains the stronger one. USDCAD- looks bullish AUDCAD- looks bearish CADJPY- looks bullish
UC is still in an uptrend from June, and price is up 0.47% on the day. The pair does look like it's pulling back from the highs, and major support is at 1.24867 if price continues to dip. A supportive trend line lies right below should the USD slip during the week.
AC has been in a channel since early June, and it looks bearish on this 4H timeframe as well. We have an overall downtrend while price hovers around its 200 SMA. Support lies below around 0.92909 and the bottom of the channel.
CJ bounced off support around 88.013 forming its second bottom on the 4H chart and is now heading for resistance around 88.400. A break in this level could lead to a test at higher resistance around 88.906.
Yesterday, the Federal Open Market Committee (FOMC), the Federal Reserve’s policy-making body, implemented yet another 75 basis point interest rate hike. While this move was perfectly in line with market forecasts, Chair Powell’s comments following the subsequent press conference, in which he discussed the FOMC’s new set of economic projections, were significant. He continued to […]
Statistics Canada released a surprising new batch of inflation data this morning: month-over-month CPI failed to meet market forecasts, declining by 0.3% instead of the anticipated 0.1%. Rather than being an outlier, the other measurements of CPI mostly followed suit, as both year-over-year Trimmed CPI and Median CPI likewise failed to meet expectations. Trimmed CPI’s […]
At 9:30 pm Eastern Time tonight, the Reserve Bank of Australia (RBA) will be publishing their latest round of monetary policy meeting minutes. While there is a chance that their intentions could come across as more hawkish than expected, they currently have little reason to be. Despite relatively low unemployment at 3.5%, steady GDP growth, […]
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