AUD/CAD Forecast & Technical Analysis
Canada – Wholesale Sales
On Monday, at GMT 12:30 p.m., the Statistics Canada released the month-over-month wholesale sales data. It measures the changes in the total value of sales. The change is made by the wholesale sector in Canada over the past month.
Binary options investors consider the wholesale sales figure to be an important leading indicator of the Canadian economy. Because retailers tend to place more orders to wholesales when they feel optimistic about their retail sales. Hence, an increase in the wholesale sales signals a growing GDP in the future.
Last month, the Canadian wholesale sales increased by 1.0%. This month, analysts were expecting it to decrease -0.2%. However, it went up by 1.8%.
Australia – CB Leading Index
On Wednesday, at GMT 2:30 p.m., the Conference Board Inc released the month-over-month leading index for Australia. It measures the changes in the level of a composite index based seven other major fundamental indicators.
The CB leading index aggregates some of the other indicator data. So, binary options traders consider this to be an important representation of the overall Australian economy. However, since most of these data are previously released, the CB leading index tends to have a minimized immediate market impact.
Last month, the CB leading index came out at -0.3%. This month, it increased by 0.4%.
The AUD/CAD broke above the downtrend line on March 9, 2020. But the upswing soon turned amid the global market meltdown over the past two weeks. Consequently, it fell by around 990 pips. Over the last week, a bullish retracement started. However, earlier today, the AUD/CAD soon found resistance near the 61.8% Fibonacci retracement, at 0.8680. So far, it has fallen by around 170 pips and found support near the 0.8510 level.
The Canadian unexpectedly Wholesale Sales went up by 1.8%. On the other hand, the Australian CB Leading Index only went up by 0.4%. We believe it would set a bearish fundamental outlook for the AUD/CAD this week. Therefore, if the AUD/CAD closes below the support near 0.8510, it would likely attract additional bearish momentum in the market.
Hence, High Low binary options traders should look out for trading opportunities below this major support level around 0.8510.
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