This week is off to a bit of a slow start, at least in terms of economic releases.
I’m counting on AUD price action to pick up once the RBA prints the minutes of its latest policy meeting.
Can AUD/CAD complete its bullish pullback then?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
BusinessNZ services index up from 55.9 to 57.4 in Oct
Fed official Waller: FOMC might cut size of rate increases
U.K. Rightmove HPI slipped by 1.1% m/m this month, following 0.9% uptick
IMF: Global economic outlook getting gloomier
Treasury Sec Yellen: Energy prices could push Europe into recession
Morgan Stanley: Some chance of U.S. avoiding recession in 2023, but not Europe
BOJ Gov. Kuroda: FX rates should reflect fundamentals, sharp moves undesirable
Chinese regulators urged financial institutions to aid stressed property developers
Crude oil extends gains on China’s easing COVID restrictions
U.K. CB leading index at 2:30 pm GMT
SNB Chairman Jordan’s speech at 4:30 pm GMT
FOMC member Brainard’s speech at 4:30 pm GMT
New Zealand visitor arrivals at 9:45 pm GMT
Japanese preliminary GDP at 11:50 pm GMT
RBA monetary policy meeting minutes at 12:30 am GMT (Nov. 15)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: AUD/CAD
The coast is clear in terms of top-tier economic releases in the next trading session!
This might leave traders looking ahead to the upcoming release of the RBA meeting minutes, which should contain more clues on the central bank’s policy plans.
Any hints that the Australian central bank is looking to slow down or pause its tightening moves might mean more downside for the currency, possibly dragging AUD/CAD to nearby support levels.
For now, the Loonie is drawing some support from rising crude oil prices, as investors are projecting stronger demand once China lifts its COVID restrictions.
With that, AUD/CAD could retreat to the area of interest spanned by the Fibonacci retracement levels on the hourly time frame.
The former resistance zone around .8750-.8800 is located between the 50% to 61.8% levels, which might be enough to draw buyers out.
After all, the 100 SMA is still above the 200 SMA to signal that support levels are more likely to hold than to break. Stochastic has a bit of room to head lower before reaching the oversold area, but turning higher would confirm that bulls are returning.
In that case, AUD/CAD could set its sights back on the swing high at the .8900 handle or higher.