Can AUD/CAD maintain its post-RBA fee hike momentum even when the BOC makes its coverage announcement?

Try this consolidation sample I’m watching!

Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/JPY’s pullback after the shock RBA hike. Make sure to take a look at if it’s nonetheless a superb play!

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

Contemporary Market Headlines & Financial Knowledge:

SEC sued crypto trade Coinbase for working as an unregistered dealer, a day after submitting a lawsuit in opposition to Binance

World Financial institution raised international progress forecast from 1.7% to 2.1% for the 12 months however downgraded 2024 forecast from 2.7% to 2.4%

Australia’s Q1 GDP confirmed that economic system expanded solely 0.2% quarter-on-quarter vs. projected 0.3% progress determine, earlier studying upgraded from 0.5% to 0.6%

RBA Governor Lowe stated that additional tightening could also be wanted because it’s too early to declare the battle in opposition to inflation is over

Chinese language commerce surplus shrank from $90.2 billion to $65.8 billion in Could, as exports slumped 7.5% whereas imports fell 4.5% year-over-year

German industrial manufacturing rose 0.3% month-over-month versus projected 0.7% uptick in April, earlier studying revised from 3.4% drop to 2.1% decline

Worth Motion Information

Overlay of AUD Pairs 15-min

The Aussie carried on with its bullish run in opposition to its foreign exchange counterparts for probably the most a part of the New York session, earlier than returning some beneficial properties when the Land Down Underneath printed its Q1 GDP.

Including additional draw back for the Aussie was China’s downbeat commerce stability, which revealed a sharper than anticipated hunch in export exercise.

Nonetheless, the commodity foreign money managed to regain its bearings when RBA head Lowe reiterated the necessity to hold tightening so as to keep off cussed inflationary pressures.

BOC financial coverage assertion at 2:00 pm GMT
U.S. EIA crude oil inventories at 2:30 pm GMT

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

AUD/CAD 15-min Foreign exchange Chart by TV

Breakout alert!

This Aussie pair settled in consolidation after the day prior to this’s sharp rally following the shock RBA rate of interest hike.

Now will probably be the BOC’s flip to make their June 2023 financial coverage determination, and plenty of predict some trace of hawkishness from the Canadian central financial institution.

In the event that they hike charges or sign willingness to renew tightening quickly, the Loonie may regain the higher hand and spur a breakdown for AUD/CAD.

This may be sufficient to take the pair right down to S1 (.8900) which strains up with the day prior to this low and even all the way in which right down to S2 (.8850) that strains up with one other psychological stage.

A cautious BOC announcement, then again, may set off a bullish break and take AUD/CAD as much as R2 (.9000).