Daily Technical Analysis

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The Australian Dollar (AUD) recently found itself in a precarious position, as it dipped to a 10-month low. However, despite this challenging situation, the AUD/USD pair managed to maintain its stance above the crucial 0.6350 mark. This resilience came in the wake of disappointing news regarding Australia’s Retail Sales data, signaling a complex financial landscape for the Aussie Dollar.


ne notable factor contributing to the economic puzzle is the fluctuating monthly Consumer Price Index (CPI) in Australia. Following a decline in July, the CPI rebounded, largely attributed to the relentless surge in energy prices. This unexpected rise in inflation has stirred speculation about the Reserve Bank of Australia (RBA) possibly implementing another interest rate hike. Surprisingly, even with these promising CPI figures, the AUD struggled to gain significant traction in the forex market.


One of the major culprits behind the Australian Dollar’s struggle is the palpable increase in risk aversion sentiment among investors. This apprehension has exerted substantial downward pressure on the currency. Additionally, the AUD’s potential upside is curtailed by the drop in commodity prices, a crucial driver of the AUD/USD pair.


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Canadian Dollar Seeks Upside Against USD


The Canadian Dollar (CAD) is currently making slight gains against the US Dollar (USD) as the Greenback takes a breather from its recent ascent. This subtle shift in the forex market is influenced by various factors, including the temporary stabilization of oil prices, which is a significant driver of the Canadian economy. At present, the USD/CAD pair is trading relatively flat for the day, experiencing a marginal decline of 0.2% and hovering near the consolidation level of 1.3500.


In terms of economic data, the Canadian calendar remains light, with the highlight of the week being Friday’s release of Gross Domestic Product (GDP) figures for the month of July. Projections suggest a modest 0.1% increase compared to the previous month’s -0.2% contraction. It’s important to note that oil prices and the broader US Dollar Index (DXY) will continue to exert substantial influence over the CAD’s performance in the foreseeable future.


Over the course of September, the Canadian Dollar exhibited notable strength, registering an impressive 2.3% gain against the USD. This bullish performance was largely underpinned by the surging prices in the oil market, given that Canada is a major exporter of crude oil. However, in the short term, the USD/CAD pair is currently down by 1.5%, with the robust performance of the DXY prevailing over the fluctuations in crude oil prices.


Read More : Daily & Weekly Analysis On Xtreamforex