"When I spoke at the Anika Foundation event last year, CPI inflation in Australia had been below 2 percent for a number of years and, in underlying terms, was just 1…
AUD/CAD: the range is about to break
2019-11-11 • Updated
SELL 0.9155; TP 0.9130; SL 0.9165
BUY 0.9220; TP 0.9250; SL 0.9205
AUD/CAD is consolidating in the narrow range between 0.92 and 0.9160 for the fifth day. On the one hand, there’s bullish divergence on D1 and an advance above 0.92 will open the way up to 0.9215 and 0.9250 (50% Fibo of the June decline). On the other hand, the fall below 0.9160 will be in line with the major downtrend and lead the pair towards 0.9130 and probably lower. All in all, in the most short-term, the pair will more likely remain under pressure.
The US dollar index rose to 105.40 after the Fed’s 75-basis-point key rate hike, while the stock and the crypto markets fell. However, during the past few days, investors and traders returned to risk assets as they expect inflation growth to slow. Moreover, Jerome Powell, the head of the Federal Reserve, announced the Fed might start cutting the key rate by 2024, which is the most evident hint of an upcoming market reversal.
Recently, the Bank of Canada hiked the interest rates by 50 basis points. It is now 1.5%, and it’s only the beginning.
The US dollar index has all chances of reaching the 2000s high of 120.00.
The Consumer Price Index announcement by Statistics Canada is set for release in a few hours will reveal the state of inflation in the Canadian economy
After bouncing off the previous Major trendline last month, Bitcoin seems to be retesting the support area again in hopes of catching a bullish momentum.