11 Oct 2013
AUD/CAD short-term overbought but 0.9942 target acting as a magnet
FXstreet.com (Barcelona) - The AUD/CAD cross has been on a torrid rally of late rallying from 0.9168 to 0.9852 in just over two months. The rally reflects the “bullish Asia-Pacific / bearish North America” trend that has been in play recently.
AUD/CAD traders to react to Chinese and Canadian data on Friday
We have seen this trend of strong Yen, strong Kiwi, and strong Aussie Dollar coupled with a weak greenback and Canadian Dollar over the last couple of months. It seems like folks are using AUD and NZD as proxies for regional economic recovery and using the Canadian Dollar as a high-beta play on the US economy.
AUD/CAD traders will be reacting to Chinese New Loans data early in Friday’s session and monthly employment data and the BOC’s Business Outlook Survey out of Canada later in the session.
Technical outlook for AUD/CAD
Technicians say the AUD/CAD cross is clearly overbought short-term, but that the chart is pointing to even higher prices ahead once a minor correction or consolidation takes place. They have an upside target for the cross of at least 0.9942 with additional resistance of 1.0125. Support for the cross comes in at 0.9703 and is backed up by 0.9588.
AUD/CAD traders to react to Chinese and Canadian data on Friday
We have seen this trend of strong Yen, strong Kiwi, and strong Aussie Dollar coupled with a weak greenback and Canadian Dollar over the last couple of months. It seems like folks are using AUD and NZD as proxies for regional economic recovery and using the Canadian Dollar as a high-beta play on the US economy.
AUD/CAD traders will be reacting to Chinese New Loans data early in Friday’s session and monthly employment data and the BOC’s Business Outlook Survey out of Canada later in the session.
Technical outlook for AUD/CAD
Technicians say the AUD/CAD cross is clearly overbought short-term, but that the chart is pointing to even higher prices ahead once a minor correction or consolidation takes place. They have an upside target for the cross of at least 0.9942 with additional resistance of 1.0125. Support for the cross comes in at 0.9703 and is backed up by 0.9588.