Searching for setups forward of the RBA’s rate of interest determination?

Try AUD/CAD’s potential development pullback alternative!

Earlier than transferring on, ICYMI, I’ve listed the potential financial catalysts that it is advisable to be careful for this week. Examine them out earlier than you place your first trades immediately!

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

Recent Market Headlines & Financial Knowledge:

Over the weekend, OPEC and associates introduced stunned markets recent output reduce plans:

• The group of oil producers will reduce 1.16 million barrels per day from Might till the top of the 12 months
• Saudi Arabia (500K bpd), Iraq (211K), UAE (144K), Kuwait (128K), Oman (40K), Algeria (48), and Kazakhstan (78K) have pledged each day output cuts.
• The shock discover was made as a “precautionary measure” to stabilize the oil marked and has boosted oil costs through the Asian session.

Due to rising prices and slower abroad progress, sentiment amongst Japan’s largest producers has dropped to its lowest since December 2020. In the meantime, hopes of a rebound in tourism and companies demand led to a gentle(ish) index for large companies suppliers.

China’s Caixin manufacturing PMI dipped from an eight-month excessive of 51.6 to 50.0 in March over weaker exterior demand.

Australia’s constructing permits grew by 4.0% m/m in February after a 27.1% hunch in January as approvals for personal sector homes improved by 11.3%.

Australia’s retail exercise noticed one other 0.2% m/m progress in February, supporting a steadier progress after post-economic reopening spikes within the final three months.

Value Motion Information

Overlay of JPY Pairs 15-min

OPEC and its associates’ determination to shock markets with a recent spherical of supposed output cuts dominated the Asian and early European session buying and selling.

The safe-haven yen, specifically, gained factors after a spot decrease as merchants additionally digested weaker-than-expected manufacturing facility exercise in China.

The yen quickly made new intraday lows, nonetheless, since merchants turned to pricing in central banks all over the world needing to boost rates of interest additional to fight the influence of upper oil costs… and realizing that any tightening would not come from the uber dovish Financial institution of Japan (BOJ).

Canada’s manufacturing PMI at 1:30 pm GMT
U.S. ISM manufacturing PMI at 2:00 pm GMT
BOC enterprise outlook survey at 2:30 pm GMT
NZIER enterprise confidence at 10:00 pm GMT
RBA’s coverage determination at 4:30 am GMT (Apr 4)

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

AUD/CAD 15-minute Foreign exchange Chart by TradingView

OPEC+’s shock oil output cuts brought on AUD/CAD to hole decrease at first of the week.

China’s disappointing PMI experiences then dragged the China-sensitive AUD decrease earlier than it discovered assist on the midway mark of AUD/CAD’s full each day ATR.

And now merchants are beginning to worth in in rate of interest hikes from main central banks together with the Reserve Financial institution of Australia (RBA) which is initially anticipated to pause its fee hike cycle this week.

Due to hawkish RBA expectations, AUD/CAD is now buying and selling above its each day open worth and nearer to a damaged assist from late final week.

As you possibly can see, the inflection level additionally represents the 50% Fibonacci retracement of Friday’s downswing and the Pivot Level degree on the 15-minute timeframe.

Will AUD/CAD prolong its downtrend? If the RBA pauses its fee hikes regardless of recent threats of upper inflation and banking issues, then AUD/CAD might dip again to its Monday lows or make new intraweek lows.

But when the RBA raises its charges when many had priced in a pause, then AUD/CAD might see further demand that would push it to the .9100 earlier space of curiosity.