AUD/CAD Likely to Remain Bearish Amid Weak Commodity Prices in Australia
Last Updated on March 18, 2020
Australia – Commodity Prices
On Thursday, at GMT 5:30 a.m., the Reserve Bank of Australia will release the Commodity Prices data. It measures the changes in the selling price of exported commodities.
Australia is a mineral rich nation. It exports a significant amount of minerals and other natural resources. A growing Commodity Price means more value added to the economy. So, it creates more demand for the Australian Dollar. Hence, binary options traders consider Commodity Prices to be an important indicator for the economy.
Last month, the Australian Commodity Prices decreased by -5.0%. If the negative trend continues, it will bring down the value of the Australian Dollar.
Canada – Manufacturing PMI
On Thursday, at GMT 2:30 p.m., the Markit will release Canada’s manufacturing purchasing managers’ index (PMI) figure. It measures the level of a diffusion index by surveying around 400 purchasing managers in the country.
Businesses are the first to react to changing economic climate. The manufacturing PMI is calculated based on survey questions covering employment and production. Also, price levels and new orders situation. Hence, binary options investors consider this data to be a leading indicator of the overall economic health of the country.
Last month, the Canada’s manufacturing PMI reading came out at 51.4. If it remains above the 50 level, it will likely strengthen the value of the Canadian Dollar against other currencies.
On December 18, 2019, the AUD/CAD broke below the uptrend line. However, soon it resumed the uptrend. After reaching the 0.9135 level, it again found a strong resistance. Over the last two weeks, it remained trapped within the uptrend line and the resistance near 0.9135 level. Currently, it is once again testing the 0.9135 level.
The Australian Commodity Prices fell by -5.0% last month and it will likely go down once again. On the other hand, the Canadian Manufacturing PMI will likely remain positive above the 50 level. We believe it would set a bearish fundamental outlook for the AUD/CAD this week. Therefore, if the AUD/CAD remains below the resistance near 0.9135, it would likely attract additional bearish momentum in the market.
Hence, Australian binary options traders should look out for trading opportunities below this major resistance level around 0.9135.
- GBP/USD Likely to Resume Downtrend Amid Forecast of Lower Unemployment Rate in the US - January 4, 2022
- USD/CHF Likely to Remain Bullish Amid Forecast of Improving Durable Goods Orders in the US - December 20, 2021
- USD/JPY Bullish Momentum Likely to Continue Amid Forecast of Increasing Inflation in the US - December 7, 2021
EURUSD falls before the results of the European Central Bank meeting
EURUSD witnessed a decline in the morning of Thursday's trading in the European market after…
Gold prices hit their highest level in a year
Gold prices jumped more than 2% during today's session in the European market, in the…
Gold prices fell after hitting the highest level of 1900 dollars an ounce
Gold prices fell during today’s session in the European market, after yesterday recording a record…
EURUSD moves away from three-week highs after US inflation data
EURUSD fell on Friday morning in the European market, and recorded its first daily loss,…
EURUSD continues to climb to the highest level in three weeks
EURUSD continued to achieve gains on Friday morning in the European market, and recorded the…
Gold prices drop with the continuous rise of the US dollar
Gold prices fell during the trading session today in the European market, to deepen their…