AUD/CAD looks set to extend its weeks-long uptrend!


Will today’s Canadian data release provide enough momentum for AUD/CAD bulls?


Before moving on, ICYMI, yesterday’s watchlist looked at AUD/USD’s uptrend support after both the U.S. and Australia printed weaker-than-expected economic data. Be sure to check out if it’s still a valid play!


And now for the headlines that rocked the markets in the last trading sessions:


Fresh Market Headlines & Economic Data:

EIA: U.S. crude inventories up by 8.4 million barrels last week vs. 593K draw expected


BusinessNZ manufacturing index unchanged at 47.2 amid weak orders and production in December


Japan’s core inflation hit 4.0% y/y – a 41-year high – in December vs. BOJ’s 2.0% target



FOMC’s Williams: “more work to do” to bring inflation to 2% consistently

GfK: economic concerns and high cost of living dragged UK consumer mood back to near 50-year low of -45 in January


PBoC left its key lending rates unchanged for the fifth straight month in January


Improving demand outlook in China, tightening sanctions of Russian oil pushing crude oil to its second weekly price increase


Crypto lending unit of Genesis files for U.S. bankruptcy


Gold eases but set for fifth straight weekly rise on Fed slowdown bets


Asian stocks edge up, dollar sags as markets mull Fed risks


Upcoming Potential Catalysts on the Forex Economic Calendar:

SNB Chairman Jordan to participate in a panel discussion at 8:00 am GMT

ECB President Lagarde to discuss economic outlook at 10:00 am GMT

Canada’s retail sales at 1:30 pm GMT

US existing home sales at 3:00 pm GMT


Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️


What to Watch: AUD/CAD

No Chinese data release next week? No problem!


AUD/CAD has been in an observable uptrend after breaking above a range in mid-November.



And why not? The Bank of Canada (BOC) has been hinting that it’s almost done with its interest rate-raising ways. Meanwhile, optimism over China’s economic reopening has been supportive of AUD.

AUD/CAD, which hit a high at .9440 earlier this week, dipped back down but found support at the .9300 psychological handle.


.9300 happens to line up with December’s resistance AND the 50% Fibonacci retracement of 2023’s upswing. The inflection point might attract some AUD bulls!


It also doesn’t hurt that AUD/CAD’s prices are diverging from its oscillator and hinting at trend continuation.


A long trade at the first signs of bullish momentum would set you up nicely in case AUD/CAD revisits its weekly highs or spends the next trading sessions making new January highs.


Just make sure to use wide stops, aight?


Currency crosses like AUD/CAD tend to see volatile price action so you’ll want to leave room in case today’s Canadian retail sales data point to the BOC delaying the end of its rate hike days!