Forecasts of the Australian-Canadian movement

AUDCAD at the basic level

The Australian-Canadian pair rose during trading on Monday, after declines for the pair during trading last week, despite the Bank of Canada cutting its key interest rate by 25 basis points to 2.5% after a sharp slowdown that exceeded expectations, including a 1.6% contraction in GDP for the second quarter and a collapse in exports by about 27%.

The deterioration of the labor market with the loss of net jobs and the unemployment rate reaching almost 7.1% in August also eased wage pressures and supported monetary policy easing efforts.

On the other side of Australia, the Australian dollar rose today after optimistic economic comments from Michelle Bullock during her appearance before an economic committee in the House of Representatives, where she said that the economy is in good shape with growth and inflation, noting that there is no urgent need to cut interest rates in the near term.

When the central bank meets next week, the markets indicate a probability of only 16% to cut the interest rate by a quarter of a percentage point, and this percentage rises to about 70% at the next meeting on November 4.

AUDCAD at the technical level

The pair is trying to climb after approaching the levels of the main uptrend, where we are currently targeting the 0.9200 levels on the pair as an initial target and then the main peak levels at 0.9320.

Any corrective pullback near the trend and support levels shown, we expect that it will be another buying opportunity for the pair with the same goals.

This scenario fails if the 0.8950 levels break down.