Appears to be like like a variety of main currencies are pulling again from their excessive ranges!
Can AUD/CAD retrace sufficient for merchants to contemplate a break-and-retest commerce?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out GBP/USD for pullback opportunities. You should definitely try if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final trading sessions:
Recent Market Headlines & Financial Information:
EU goals to chop dependence on Russian fuel by nearly 80 % this 12 months
Russia warns West of $300 per barrel oil, cuts to EU fuel provide
Japan’s wages up by 0.9% in Jan, the primary development in 5 months
UK BRC retail gross sales improve by 2.7% y/y in Feb because of furnishings and residential equipment demand
Australia NAB enterprise circumstances (up 7 factors to +9) and confidence (up eight factors to +13) enhance in February
Japan’s coincident indicator index fell 0.5% in Jan over the Omicron variant
Germany industrial manufacturing unexpectedly accelerates from 1.1% to 2.7% in Jan
Oil corporations, Asia shares drop as Ukraine talks make little progress
Most Asian markets falter as commodity costs gasoline inflation worries
U.S. commerce stability at 1:30 pm GMT
Canada’s commerce stability at 1:30 pm GMT
NZ quarterly manufacturing gross sales at 9:45 pm GMT
RBA Gov. Lowe to offer a speech in Sydney at 10:15 pm GMT
Japan’s closing GDP at 11:50 pm GMT
China’s CPI studies at 1:30 am GMT (Mar. 9)
Use our new Currency Heat Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: AUD/CAD
There have been a couple of knowledge releases through the Asian session however focus was nonetheless very a lot on crude oil costs.
Particularly, the newswires have been dominated by headlines that the European Union (EU) will scale back its Russian fuel imports. In return, Russia has threatened to chop fuel provides and floated the concept of a $300 per barrel oil. *Shudders*
Crude oil costs hit $130 earlier than steadying at round $120.
Oil costs firming on the $120 zone and whispers about crude oil hitting $300 might be why AUD/CAD traded a lot decrease in the present day. In fact, it didn’t assist that some AUD bulls who had priced in a fee hike in February had taken income when AUD/CAD hit the .9450 ranges.
All of the CAD-buying and AUD-selling might drag AUD/CAD to the .9250 space that traces up with the 38.2% Fibonacci retracement of February’s upswing. And why not? As you may see, .9250 can be close to a damaged pattern line resistance and the 200 SMA on the every day timeframe.
Stochastic remains to be telling us that AUD/CAD stays overbought, so AUD bears can make the most of in the present day’s Canadian commerce stability launch to catch a few of the bearish momentum earlier than AUD/CAD finds a help zone.
When you’d reasonably look forward to an opportunity to purchase AUD, then you definately’ll need to pay shut consideration to the .9250 space that we’ve marked or have a look at different areas of curiosity like .9300 and .9350 for entry alternatives.