AUDCAD and USDCAD, H1
The Canadian manufacturing report came in close to expectations, although the lack of growth for total shipment volumes was a tad disappointing.
Canada manufacturing shipments nudged 0.2% higher in September after a revised 0.5% decline in August shipment values (was -0.4%). By sector, gains were narrowly based in September, as 8 of 21 industries saw increases. A 3.1% gain in transportation industry sales led the way in September, which was driven by a 6.1% bounce in motor vehicle assembly and a 1.9% climb in motor vehicle parts. Production picked-up following motor vehicle assembly plant shutdowns in July and August. Total sales volumes fell 0.1%, which is rather disappointing for the September GDP outlook. We are maintaining our 0.1% estimate for September GDP for the time being, but this report tips the risk around our projection to the downside.
USDCAD pulled below, the overnight bottom of 1.3150, and currently traded to 1.3138 lows, following the Canadian manufacturing data.Stronger oil prices kept a cap on the pairing since Thursday’s close, as WTI crude tops $57.70. Next floor for the pair is at 1.3100 and Resistance at 1.3193.
Conversely, AUDCAD spiked up to 0.9597 highs reversing up to 50% of yesterday’s losses. If the pair manage to close at the bottom of the hour above 38.2% Fib. retracement level, we could see a retest of the PP level at 0.9600 level and also yesterday’s high at 0.9647.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
EUR/USD: The first upside target is seen at the 1.0710–1.0715 region
The EUR/USD pair trades in positive territory for the fourth consecutive day near 1.0705 on Wednesday during the early European trading hours. The recovery of the major pair is bolstered by the downbeat US April PMI data, which weighs on the Greenback.
GBP/USD rises to near 1.2450 despite the bearish sentiment
GBP/USD has been on the rise for the second consecutive day, trading around 1.2450 in Asian trading on Wednesday. However, the pair is still below the pullback resistance at 1.2518, which coincides with the lower boundary of the descending triangle at 1.2510.
Gold price struggles to lure buyers amid positive risk tone, reduced Fed rate cut bets
Gold price lacks follow-through buying and is influenced by a combination of diverging forces. Easing geopolitical tensions continue to undermine demand for the safe-haven precious metal. Tuesday’s dismal US PMIs weigh on the USD and lend support ahead of the key US data.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce its reliance on the US dollar after plans for its stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.