AUD CAD

The Bank of Canada’s (BOC) hawkish hike weighed on sentiment as it rekindled some concerns that central banks are not as close to their terminal rates as originally thought.

Since October 2022 the pair has been moving higher and has recently hit the 61.8% Fibonacci retracement level

If AUD/CAD can get though the near-term resistance, then it will target near 0.9700.

The Australian dollar was lower against all majors except NZD last week. It wasn’t a great week for the ASX 200 either which is on track for its worst month since the pandemic.

US 10-year yields have a strong negative correlation with AUD/CAD.

The FTE 100 is potentially a day’s trade from testing 7600 after hitting 7550 target yesterday. For today’s chart we look at a potential swing trade long on AUD/CAD.

With Omicron concerns clearly abating traders were happy to take on risk yesterday with oil, stocks, yields and commodity FX all rising in tandem.

Lower trading volumes due to Thanksgiving in the US made for a quiet session overnight, but that didn’t prevent the AUD/CAD cross making a ‘break’ for it.

Positive earnings continued to support equity markets overnight, with the S&P 500 closing just 9 points from its record high having rallied 6% from September’s low.

AUD/CAD has been moving higher off the March 2020 lows and has stalled