- AUD/CAD bull's one last effort to hold support ahead of what could be one-way traffic in CAD.
- Should the Bank of Canada hold-off after a strong GDP number, the floor in AUD/CAD could melt away.
AUD/CAD bulls have been holding the fort in the 0.8900/20s ahead of the Canadian GDP today and the Australian next week. What is key, are the respective central bank meetings next month as well.
Canadian GDP
First up, Canadain GDP - A better-than-expected GDP print will indeed be emphasising a reduced urgency for the Bank of Canada to be preemptive on rates, particularly with the October meeting nearly fully priced. Markets will look to the USD/CAD levels of 1.33 to be reinforced. Analysts at TD Securities note risk of a break below 1.32 on a larger surprise than expected.
BoC
Analysts at TDS offered their views:
- "While we think the BOC will eventually ease (Jan 2020), there is no urgency to do so."
- The economy is expected to moderate in H2 but from a solid +3% rate in Q2. Importantly, financial conditions have appreciably eased since the July MPR. Much of this has come from 5yr bond yields, which will further aid a recovering housing market."
Meanwhile, the price of oil has been a supporting factor to the Loonie on demand factors, but that comes second the trade war headlines that have seen a vast improvement in terms of optimism for a trade deal in the past 48-hours, subsequently giving the Aussie a fresh tank of oxygen. Should there be a continued improvement there, risk appetite flooding back will only go to serve a less dovish Reserve Bank of Australia outcome next month and likely support the Aussie further. However, will it put the bank on par with the BoC? Probably not. Should the Bank of Canada hold-off after a strong GDP number, the floor in AUD/CAD could melt away and keep the cross on the backfoot for an extended period of time.
AUD/CAD levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD falls toward 1.0500 amid risk-off mood
EUR/USD has come under fresh selling pressure, easing toward 1.0500 in the European session on Thursday. The pair faces headwinds from risk-off flows due to rising geopolitical conflict between Russia and Ukraine and worries over the potential US tariffs on the EU. ECB- and Fedspeak are awaited.
GBP/USD stays pressured toward 1.2600 ahead of US data, Fedspeak
GBP/USD remains pressured toward 1.2600 in European trading on Thursday. The pair's underperformance could be attributed to a risk-aversion market environment. Traders stay cautious amid rife geopolitical tensions ahead of mid-tier US data and Fedspeak.
Gold price extends gains beyond $2,650 amid rising geopolitical risks
Gold price extends its bullish momentum further above $2,650 in Thursday's European session. Gold price risies for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. US data and Fedspeak are next in focus.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.