AUDCAD – Technical Analysis for Australian Forex Brokers
Australia – Private Sector Credit
On Friday, at GMT 1:30 a.m., the Reserve Bank of Australia will release the month-over-month Private Sector Credit data. It measures the changes in the total value of new credit issued to consumers and corporations in the country over the previous month.
Australian forex brokers consider the private sector credit to be an important fundamental indicator of the Australian economy. Because borrowing and spending are highly correlated. Consumers and businesses only take out credit when they feel confident about their ability to pay it back in the future. Hence, it also acts as a measure of consumer and business confidence.
Last month, the private sector credit in Australia increased by 0.4%. The forecast for this month is currently set at an increase of 0.4% as well.
Canada – Gross Domestic Product
On Friday, at GMT 12:30 p.m., the Statistics Canada will release the month-over-month Gross Domestic Product (GDP). It measures the changes in the inflation adjusted value of all products and service made in the country over the past quarter.
The GDP measures the overall productivity in the economy. Hence, it acts as an indicator of the actual economic activity in the country. Binary options investors consider the Canada’s GDP (m/m) to be an important indicator of the health of the economy.
Last month, the Canadian GDP did not grow at all and came out at 0.0% growth. Analysts are expecting it to grow by 0.1% this month.
AUD/CAD Forecast
Since June 22, 2018, the AUD/CAD remained highly bearish. Over the last several months, the AUD/CAD fell by around 650 pips and formed a downtrend line. However, after reaching near the 0.9310 level, it found a strong support. Over the last two weeks, it started a bullish retracement and currently, it is trading near the resistance around 0.9435. Please note that the AUD/CAD is also trading very close to the downtrend line on the daily time frame.
The Australian Private Sector Credit will likely grow by an additional 0.4%. On the other hand, analysts are expecting the Canadian GDP to grow by only 0.1% over the last month. We believe it would set a bullish fundamental outlook for the AUD/CAD this week. Therefore, if the AUD/CAD closes above the resistance near 0.9435, it would likely attract additional bullish momentum in the market.
Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 0.9435. However, conservative traders may want to wait for the AUD/CAD to break above the downtrend line as well.
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