24 Oct 2013
AUD/CAD cant’ get to 1.00
FXstreet.com (Chicago) - AUD/CAD continues trading below the 1.00 key psychological despite the loonie’s weakening on BoC monetary policy.
Canadian monetary policy, Australian facts
The monetary policy report was released today in Canada. Below are the main highlights: “The global economy is expected to expand modestly in 2013, although the composition of growth is now slightly less favorable for Canada. In Canada, the Bank expects that a better balance between domestic and foreign demand will be achieved over time and that economic growth will become more self-sustaining. But this will take longer than previously projected. The Bank projects that the Canadian economy will grow by 1.6 per cent in 2013, 2.3 per cent in 2014, and 2.6 per cent in 2015, reaching full capacity around the end of 2015. Inflation remains subdued. With well-anchored expectations, both core and total CPI inflation are projected to return slowly to 2 per cent around the end of 2015.” The BoC left interest rates unchanged at 1% and market participants wait for Australian data releases.
AUD/CAD Technical Levels
Technically speaking, the pair leaves the upward trendline originating last July 30th intact. Extending the bullish channel the pair remains below the key psychological front at 1.00 and is offered at 0.9991. On the downside, supports are aligned at 0.9963 (October 21st highs), 0.9926 (October 21st lows) followed by 0.9886 (October 18th lows) with an upside registering limits at 1 (October 22nd highs), 1.0036 (October 23rd highs) followed by 1.0069 (May 30th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis above the EMA20.
Canadian monetary policy, Australian facts
The monetary policy report was released today in Canada. Below are the main highlights: “The global economy is expected to expand modestly in 2013, although the composition of growth is now slightly less favorable for Canada. In Canada, the Bank expects that a better balance between domestic and foreign demand will be achieved over time and that economic growth will become more self-sustaining. But this will take longer than previously projected. The Bank projects that the Canadian economy will grow by 1.6 per cent in 2013, 2.3 per cent in 2014, and 2.6 per cent in 2015, reaching full capacity around the end of 2015. Inflation remains subdued. With well-anchored expectations, both core and total CPI inflation are projected to return slowly to 2 per cent around the end of 2015.” The BoC left interest rates unchanged at 1% and market participants wait for Australian data releases.
AUD/CAD Technical Levels
Technically speaking, the pair leaves the upward trendline originating last July 30th intact. Extending the bullish channel the pair remains below the key psychological front at 1.00 and is offered at 0.9991. On the downside, supports are aligned at 0.9963 (October 21st highs), 0.9926 (October 21st lows) followed by 0.9886 (October 18th lows) with an upside registering limits at 1 (October 22nd highs), 1.0036 (October 23rd highs) followed by 1.0069 (May 30th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis above the EMA20.