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Forex Market: AUD/CAD daily forecast

During yesterday’s trading session AUD/CAD traded within the range of 1.0153-1.0190 and closed at 1.0172, losing 0.12% on a daily basis.

At 8:51 GMT today AUD/CAD was down 0.26% for the day to trade at 1.0147. The pair broke the first key support level and touched a daily low at 1.0142 at 8:20 GMT.

Fundamental view

Australia

At 23:30 GMT the Australian Industry Group (AIG) is expected to announce the results from its survey on short-term and intermediate-term conditions in the sector of manufacturing in Australia during July. 200 manufacturers provide their assessment of overall business situation in the sector in terms of employment, new orders, output, prices and inventories. The seasonally adjusted Performance of Manufacturing Index (PMI) for Australia came in at a reading of 48.9 in June. Values below the key level of 50.0 are indicative of contraction in activity. An improvement in the value of this indicator would provide certain support to Australian dollar.

Canada

Canadian Gross Domestic Product (GDP) probably expanded 0.3% in May compared to April, according to the median forecast by experts, following another 0.1% increase in April compared to March. Canadas economy grew at an annualized pace of 2.1% in April. The GDP represents the total monetary value of all goods and services produced by one nation over a specific period of time. What is more, it is the broadest indicator of a countrys economic activity.

The report on GDP is particularly important for traders, operating in the Foreign Exchange Market. It serves as evidence of growth in a productive economy, or as evidence of contraction in an unproductive one. As a result, currency traders will look for higher rates of growth as a sign that interest rates will follow the same direction. Higher interest rates will attract more investors, willing to purchase assets in the country, while, at the same time, this will increase demand for the national currency.

If an economy is experiencing a robust rate of growth, the benefits will eventually affect the end consumer, because of the increased likelihood of spending, while through increased consumer expenditures economy has the potential to expand even further. Therefore, in case Canadian growth outpaced expectations, this would heighten the appeal of Canadian dollar. Statistics Canada is expected to release the official figure at 12:30 GMT.

Technical view

aud-cad

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.0172. In case AUD/CAD manages to breach the first resistance level at 1.0191, it will probably continue up to test 1.0209. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0227.

If AUD/CAD manages to breach the first key support at 1.0152, it will probably continue to slide and test 1.0135. With this second key support broken, the movement to the downside will probably continue to 1.0116.

The mid-Pivot levels for today are as follows: M1 – 1.0126, M2 – 1.0144, M3 – 1.0163, M4 – 1.0181, M5 – 1.0200, M6 – 1.0218.

In weekly terms, the central pivot point is at 1.0130. The three key resistance levels are as follows: R1 – 1.0206, R2 – 1.0250, R3 – 1.0326. The three key support levels are: S1 – 1.0086, S2 – 1.0010, S3 – 0.9966.

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