AUDCAD Targeting A .9070 Test

Technical & Trade ViewAUDCADTrade ViewBias: Bullish Above Bearish below .8830TechnicalsPrimary support is .8830, watch for bullish reversal patterns herePrimary upside objective .9070Next pattern confirmation, acceptance above .8980Failure below .8830 opens a test of .878020 Day VWAP bullish, 5 Day VWAP bearishInstitutional InsightsAnalysts at Credit Agricole note ‘While the Australian economy remains strong, the RBA believes it can be less aggressive than the Fed as Australia is not experiencing a wage-price spiral like the US. A falling Australian-US rate differential along with China’s weak growth will keep the AUD under downward pressure in the coming 3-6M. A soft economic landing locally and globally and recovery in China’s growth improve AUD/USD’s prospects from mid-2023 onward’Analysts at Scotia Bank note ‘The CAD has underperformed somewhat versus most of its major currency peers this week, a pattern that has become common as Q4 has progressed. The generally softer USD tone that has evolved since Sep’s valuation extremes has spilled over into North American FX generally with the MXN gaining only modestly alongside the CAD in contrast to more significant gains for the likes of the AUD and NZD as well as the GBP, EUR and JPY versus the weaker USD. CAD losses on some key crosses—EURCAD, GBPCAD, CADJPY—look poised to extend as the CAD continues to find it hard to move out of the USD’s broader shadow’

from Tickmill Expert Blog - Forex Traders Blog https://www.tickmill.com/blog/audcad-targeting-a-9070-test"
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