Who else is watching the Loonie ahead of the BOC’s policy decision?
If you are, then you’ll want to check out CAD/CHF’s short-term range in the 15-minute chart.
Before moving on, ICYMI, yesterday’s watchlist checked out AUD/USD’s uptrend ahead of Australia’s CPI release. Be sure to check out if it’s still a good play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
S&P Global Flash US Manufacturing PMI for October: 50 vs. 49.8 in September; “rates of increase in input costs and output charges slowed at the start of the fourth quarter.”
Richmond Manufacturing Activity Index for October came inline with expectations at 3 vs. 5 previous
Chinese President Xi Jinping made his first known visit to the People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE)
China approved a 1 trillion yuan ($137B) sovereign bond issue and passed a bill allowing local governments to frontload part of their 2024 bond quotas
Australia’s inflation sped up from 5.2% y/y to 5.4% y/y in September; quarterly CPI also went up from 0.8% to 1.2% in Q3
Price Action News
Overlay of AUD vs. Major Currencies Chart by TradingView
The Australian dollar was one of the biggest movers today thanks to Australia’s inflation numbers coming in way higher than analysts had expected.
Not surprisingly, hotter-than-expected consumer price increases fired up speculations of the Reserve Bank of Australia (RBA) returning to its interest rate-hiking ways in November.
AUD made new intraweek highs against its major counterparts before cautiousness in the late Asian and early European sessions took it back down to its pre-CPI levels.
Upcoming Potential Catalysts on the Economic Calendar:
China’s CB leading index at 1:00 pm GMT
BOC’s policy decision at 2:00 pm GMT; presser to follow at 3:00 pm GMT
U.S. new home sales at 2:00 pm GMT
Japan’s service price index at 11:50 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
CAD/CHF 15-min Forex Chart by TradingView
A bit of risk-taking and slight recoveries in crude oil prices likely gave the oil-related CAD a boost in the early London session trading.
CAD/CHF found support from its .6490 lows and spent the next few hours gunning for the .6510 Pivot Point level. As you can see, the pair’s current prices also line up with the middle of a range that’s been around all week.
Has CAD/CHF seen its last upswing today? Or are CAD bulls just taking a breather?
Like some major central banks, the BOC is expected to announce another pause from its interest rate hike parade. The lack of hawkish bets, along with the 100 and 200 SMAs in the 15-minute time frame, may attract sellers from CAD’s upswing.
Look out for possible bearish momentum from CAD/CHF’s mid-range resistance level. A couple of bearish candlesticks may draw in enough bears to drag the pair back to its weekly lows.
If you’d rather take advantage of CAD/CHF’s bullish momentum, though, then you may also keep close tabs on more risk-friendly, anti-CHF themes that may attract enough buyers to pump CAD/CHF past the mid-range resistance zone.
Good luck and good trading, errbody!
Comments are closed.