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USD/CAD seems to be prepared to interrupt a technical resistance space forward of Canada’s GDP launch!
Can CAD bulls flip issues round or will USD be too robust for the comdoll within the subsequent buying and selling periods?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/USD’s support zone ahead of Australia’s retail sales release. Be certain to take a look at if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final trading sessions:
Contemporary Market Headlines & Financial Knowledge:
CB China Main Financial Index learn for February: -0.1% m/m to 151.8; January upwardly revised to 0.1%
In its quarterly bulletin, SNB shared that diminished inflation and CHF power factored within the fee minimize, and that present inflation forecasts are “throughout the vary of value stability”
EIA’s crude oil inventories rose by 3.2M barrels within the week ending March 22 (-0.7M forecast, -2.0M earlier)
In a ready assertion titled “There’s Nonetheless No Rush,” voting FOMC member Christopher Waller shared his choice for decreasing the variety of Fed rate of interest cuts or pushing them “additional into the longer term”
BOJ’s Opinions Abstract repeated that “Japan’s financial system shouldn’t be in a state the place speedy coverage rate of interest hikes are crucial.”
Australia’s Melbourne Institute inflation expectations declined from 4.5% y/y to 4.3% y/y in March and marked the bottom since 2021
Australia’s retail gross sales for February: 0.3% m/m (0.4% forecast, 1.1% earlier)
Australia’s non-public sector credit score rose by one other 0.5% m/m in February (0.4% m/m forecast)
New Zealand’s ANZ enterprise confidence fell 12 pts from 34.7 to 22.9 in March; Inflation expectations dipped from 4.0% to three.8%; “Price and wage pressures stay very excessive”
Germany’s retail gross sales unexpectedly fell by 1.9% m/m in February (0.3% forecast, -0.4% earlier), dashing hopes that consumption may assist offset weak industrial manufacturing situations
Worth Motion Information
Overlay of USD vs. Main Currencies Chart by TradingView
With not a variety of market-moving information releases, merchants appear to have centered on Fed member Christopher Waller’s remarks late Thursday.
The voting FOMC member cited slowing progress in opposition to excessive inflation and robust labor and progress prospects as his causes for preferring fewer Fed rate of interest cuts this yr OR for the Fed to push again its first rate of interest minimize.
The U.S. greenback gained some floor on the speech but in addition misplaced most of its features initially of Asian session buying and selling. European session merchants really feel otherwise, although, as a result of USD shot up once more and is closely within the inexperienced in opposition to its main counterparts (besides JPY).
Upcoming Potential Catalysts on the Economic Calendar:
Canada’s monthly GDP at 12:30 pm GMT
U.S. ultimate This fall 2023 GDP at 12:30 pm GMT
U.S. Chicago PMI at 1:45 pm GMT
U.S. pending residence gross sales at 2:00 pm GMT
U.S. revised UoM client sentiment at 2:00 pm GMT
Tokyo’s core CPI at 11:30 pm GMT
Japan’s preliminary industrial manufacturing at 11:50 pm GMT
Japan’s retail gross sales at 11:50 pm GMT
Use our new Currency Heat Map to shortly see a visible overview of the foreign exchange market’s value motion! ️
USD/CAD 15-min Foreign exchange Chart by TradingView
USD/CAD is retesting a key month-to-month resistance zone! As talked about above, the U.S. greenback noticed a contemporary wave of shopping for that took it increased particularly in opposition to “dangerous” bets like AUD, NZD, CAD, and GBP.
The greenback’s power appears to have bumped USD/CAD above the 1.3600 psychological degree which additionally traces up with the R1 Pivot Point line.
Canada is releasing its monthly GDP information later in the present day whereas Uncle Sam will print a bunch of lower-tier studies like the ultimate This fall 2023 GDP, preliminary jobless claims, pending residence gross sales, and revised UoM client sentiment figures.
Will we see an upside breakout in the present day? Or will sufficient USD bears step in and drag USD/CAD again right down to its 1.3570 – 1.3600 vary? Depart your ideas within the feedback part under!
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