One other fee hike, one other likelihood to purchase AUD?

AUD/CAD is testing the higher limits of a Double Backside sample!

Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/JPY’s short-term downtrend inside a longer-term uptrend. Be sure you take a look at if it’s nonetheless a sound play!

And now for the headlines that rocked the markets within the final buying and selling classes:

Recent Market Headlines & Financial Information:

Main earthquake hits Turkey, Syria

Japan’s nominal wages jumped 4.8% y/y, the quickest since 1997, however actual wages dropped by 0.9% y/y and registered its first drop in two years

Japan’s family spending fell 1.3% y/y vs. 0.3% dip anticipated in December

As anticipated, RBA raised rates of interest by 25 bps to three.35% in February

RBA: “additional will increase in rates of interest shall be wanted over the months forward”

BRC: retail gross sales decelerated from 6.5% in December to three.9% y/y in January as Christmas cheer subsided

Japan’s Ministry of Finance confirms “stealth” foreign exchange interventions in October

Australia’s commerce surplus dipped from 13.47B AUD to a four-month low of 12.23B AUD in December as easing provide chain points boosted imports and rising prices weighed exports

Oil rises on China outlook, provide worries after Turkey earthquake

Greenback pauses in bullish run; Aussie climbs on RBA’s hawkish outlook

Halifax: UK home costs rose by 1.9percenty/y in January, the slowest improve since October 2019, as a result of squeeze in family earnings

Switzerland’s jobless fee edged up from 2.1% to 2.2% in January

Germany’s industrial output dropped by 3.1% m/m in December vs. 0.7% anticipated

Power imports helped double France’s commerce deficit in 2022

US and Canada’s commerce stability information at 1:30 pm GMT
BOE MPC member Cunliffe to present a speech at 3:30 pm GMT
Powell’s to talk on the Financial Membership of Washington at 5:00 pm GMT
BOC Gov. Macklem to present a speech at 5:30 pm GMT
POTUS Biden’s State of the Nation tackle at 2:00 am GMT (Feb 8)

Use our new Forex Warmth Map to rapidly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️

What to Watch: AUD/CAD

AUD/CAD 1-hour Foreign exchange Chart by TradingView

Just a few hours in the past the Reserve Financial institution of Australia (RBA) raised its rates of interest by an anticipated 25 bps to three.35%.

What merchants didn’t anticipate was for RBA members to speak about additional will increase over the subsequent few months. Naturally, AUD gained pips throughout the board on the information.

Expectations of upper rates of interest had been sufficient to ship AUD/CAD again to its .9300 earlier highs and kind a attainable Double Backside sample on the 1-hour timeframe.

Are we an upside breakout within the making?

Remember that merchants are additionally pricing in optimism over China’s financial restoration at present.

However, Canada is ready to print its commerce stability report throughout the U.S. session whereas Financial institution of Canada (BOC) Governor Macklem will take heart stage at 5:30 pm GMT.

If markets give attention to RBA’s hawkish bias and China’s restoration prospects, then AUD/CAD may bust above its .9300 highs and possibly retest inflection factors like .9370 or .9400.

But when at present’s Canadian information and speech occasions flip the highlight on CAD, then AUD/CAD may dip from its present ranges and kind a variety as an alternative.

What do you suppose?