Australian Dollar – Canadian Dollar Forecast

Short-term buy(LONG) opportunity as the Australian Dollar – Canadian Dollar pair test the support of the falling wedge.

Economic Events On AUD

Gross Domestic Product (GDP)

Change in the inflation-adjusted value of all goods and administrations delivered by the economy.

It’s the broadest proportion of monetary activity and the essential measure of the economy’s wellbeing.

Delivered quarterly, around 65 days after the quarter closes, ‘Genuine’ is more prominent than ‘Figure’ is useful for currency.

Currency	Forecast	Previous
AUD	-2.5%	0.7%

Economic Events On CAD

BOC Gov Macklem Hearings

Due to convey introductory statements at a virtual conference held together facilitated by the Bank of Canada and Reserve Bank of New Zealand. Audience questions anticipated.

BOC Governor Jun 2020 – Jun 2027, Volatility is usually experienced during his talks as merchants and investors endeavor to translate loan fee pieces of information.

As head of the central bank, which controls transient loan costs, he has more influence over the country’s currency value than some other individual.

Dealers and investors examine his public commitment as they are frequently used to dropping inconspicuous signs with respect to future moneytary-related approaches.

BOC Governor Tiff Macklem, More hawkish than anticipated is useful for currency.

Bank of Canada (BOC).

Gross Domestic Product (GDP)

Change in the expansion value of all goods, services, and administrations delivered by the economy.

It’s the broadest proportion of monetary activity and the essential measure of the economy’s wellbeing.

Delivered month to month, around 60 days after the month closes, ‘Genuine’ is more prominent than ‘Figure’ is useful for currency.

Source Statistics Canada (latest release)

Currency	Forecast	Previous
CAD	0.0%	0.4%

AUD/CAD

Building Permits m/m

These measures change the total value of new building permits issued to individuals and investors. It’s an excellent index of future construction activity because obtaining a permit is among the first steps in constructing a new building.

Frequently released monthly, about 35 days after the month ends, if the ‘Actual’ result is greater than ‘Forecast’ then is good for the currency.

Currency	Forecast	Previous
CAD	-1.1%	4.3%

Conclusion

Firstly from the Daily chart, we can closely observe that the Australian Dollar – Canadian Dollar pair is considerably trading/ consolidating within the falling wedge.

This is a chart pattern considered by investors and traders to be a bullish trend reversal or continuation pattern. The falling wedge pattern is formed when the price bounces between two downward slopings, converging trendlines.

it is Linked using a trend line on lower highs and lower lows, The two lines will slopes downwards and converge.

During the end of October which is the first month of the first quarter(Q1), the Pair made its way to the resistance of the falling wedge though it consolidated a while before breaking the key support level of 0.92800.

Secondly, AUD/CAD pair after the break-in structure got interested retail traders and investors to jump in with their short orders(SELL).

Moreover, the pair from the 2 Hour chart made some swings (Lower Highs and Lower Lows) while it rallied down, Pair has traded and tested the support trend line.

However, with the help of stochastic technical indicator on the Daily chart, its SMA’s are currently at the oversold level which is a key confirmation that the pair will buy.