Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian CPI for the third quarter increased 1.2% quarterly and 5.4% annualized. Economists predicted an expansion of 1.1% quarterly and 5.3% annualized. Forex traders can compare this to the Australian CPI for the second quarter, which rose 0.8% quarterly and 6.0% annualized. The RBA Trimmed Mean CPI for the third quarter increased 1.2% quarterly and 5.2% annualized. Economists predicted a rise of 1.1% quarterly and 5.0% annualized. Forex traders can compare this to the RBA Trimmed Mean CPI for the second quarter, which expanded 1.0% quarterly and 5.9% annualized. The RBA Weighted Median CPI for the third quarter rose 1.3% quarterly and 5.2% annualized. Economists predicted an increase of 1.0% quarterly and of 5.0% annualized. Forex traders can compare this to the RBA Weighted Median CPI for the second quarter, which expanded by 1.0% quarterly and 5.4% annualized.
The Australian Monthly CPI Indicator for September increased by 5.6% annualized. Economists predicted a rise of 5.4%. Forex Traders can compare this to the Australian Monthly CPI Indicator for August, which surged 5.2% annualized.
The Bank of Canada is predicted to keep interest rates unchanged at 5.00%. Forex traders can compare this to the previous Bank of Canada Interest Rate Decision, where interest rates were unchanged at 5.00%. It would represent the second consecutive meeting without a change in monetary policy, as the Canadian central bank allows its previous nine interest rate increases to filter through the economy. Inflation remains sticky and has begun to move higher, while the global economy, led by the US, is slowing faster than data captures. Speeches by Bank of Canada Senior Deputy Governor Rogers and Bank of Canada Governor Macklem could move the Canadian Dollar today. Another data point of interest is the Bank of Canada Monetary Policy Report.
The forecast for the AUD/CAD turned bearish after this currency pair accelerated into its descending Ichimoku Kinko Hyo Cloud, where the Senkou Span A and the Senkou Span B extended their slide. Volatility could increase with the Tenkan-sen and the Kijun-sen moving higher following the price spike, but the move could reverse over the next few trading sessions amid a drop in bullish momentum. Traders should also monitor the CCI in extreme overbought territory. A breakdown below 100 may spark the expected sell-off. Can bears regain control over the AUD/CAD and force price action into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the AUD/CAD remain inside the or breakdown below the 0.8740 to 0.8785 zone, PaxForex recommends the following trade set-up
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8765
- Take Profit Zone: 0.8565 – 0.8615
- Stop Loss Level: 0.8825
Should price action for the AUD/CAD breakout above 0.8785, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8825
- Take Profit Zone: 0.8870 – 0.8915
- Stop Loss Level: 0.8785
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