- 1 AUD/CAD – Technical Analysis for Forex Trading & CFDs.
AUD/CAD – Technical Analysis for Forex Trading & CFDs.
Canada – Manufacturing Sales
Tomorrow, at GMT 2:30 p.m., the Statistics Canada will release the month-over-month manufacturing sales data, which measures the changes in the total value of sales made by Canadian manufacturers over the past month.
Since changes in manufacturing sales affect the manufacturers’ future decisions regarding hiring, corporate spending, and overall investment climate in the country, Forex trading investors consider the manufacturing sales data to be a leading indicator of the Canadian economy.
Last month, the Canadian manufacturing sales figure increased by 1.5%. and the forecast for this month is currently set at an additional increase of 1.4%.
Australia – Unemployment Rate
On Thursday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate, which measures the percentage of total work force which remained unemployed over the past month.
Forex traders consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy because one of the main goals of the Reserve Bank of Australia is to keep the unemployment as low as possible. Although this is a lagging indicator, analysing this data can help Forex investors predict future interest rates and inflation situation in the country.
Last month, the unemployment rate in Australia came out at 5.8% and the forecast for this month is also set at 5.8%.
Trade Recommendation for the AUD/CAD
Since January 6, 2017, the AUD/CAD has climbed up by around 450 pips and found a strong resistance near the 1.0070 level. After a brief retracement to 50% Fibonacci retracement level, last week, the AUD/CAD resumed the uptrend and once again found the resistance near 1.0070 level, and formed a bearish pin bar, which initiated another round of bearish retracement.
As the Australian unemployment rate is expected to remain unchanged at 5.8%, but the Canadian manufacturing sales figure is expected to increase by 1.4%, it would likely set a bearish fundamental outlook for the AUD/CAD for the day.
The AUD/CAD price is currently trading near the 23.6% Fibonacci retracement level, which is near the important psychological support around 0.9990. If the price penetrates below this support, it would likely attract additional bearish momentum in the market.
Under the circumstances, it would be recommended that Forex traders consider placing a SELL order at market price for the AUD/CAD with their Forex trading brokers, as soon as it is trading below the 0.9990 level. A possible profit target for this trade would be around the 0.9925 level. On the other hand, Forex traders should consider placing a stop loss order above 1.0020.
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