Ransquawk

An interesting technical situation appears on the AUD/CAD pair. In the graphs of higher time frames, it can be seen that the growth movements have a fairly similar range. The day chart shows that the current growth movement reached almost the same range as the increase at the turn of the year. In recent days there have been bearish candles and the increase has at least temporarily slowed down. Is this just a correction or the beginning of the falls? You can take the risk and, contrary to the current trend, bet on the second scenario, which assumes at least a greater correction of the recent increases. Such a thesis can be based on fundamentals. Yesterday, Australia received surprisingly weak growth readings, which were well below forecasts, and in addition, the results for the second quarter were revised downwards. After all, the currency is helped by the suspension of tensions between the US and China. However, this is a rather fragile issue. Even more crucial information will come from the OPEC Vienna meeting today. A decision is to be made as to whether or not to cut oil production. Here, too, a lot of media rumours are coming in. However, if it is possible to reach even a modest agreement and the price of oil after the recent drops will have a stronger pullback, this will translate into a strengthening of the Canadian dollar. In such a comparison, the scenario assuming falls in AUD/CAD will have a chance to come true.

AUDCAD Daily

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