AUD/CAD Approaches Key Resistance Amid Increasing Private Sector Credit in Australia

AUDCAD – Technical Analysis for Go Markets Traders

Australia – Private Sector Credit

On Wednesday, at GMT 11:30 a.m., the Reserve Bank of Australia will release the month-over-month Private Sector Credit data. It measures the changes in the total value of new credit issued to consumers and corporations in the country over the previous month.

GoMarkets traders consider the private sector credit to be an important fundamental indicator of the Australian economy. Because borrowing and spending are highly correlated. Consumers and businesses only take out credit when they feel confident about their ability to pay it back in the future. Hence, it also acts as a measure of consumer and business confidence.

Last month, the private sector credit in Australia increased by 0.3%. The forecast for this month is currently set at an increase of 0.4%.

Canada – Raw Materials Price Index

On Wednesday, at GMT 1:30 p.m., the Statistics Canada will release the month-over-month Raw Materials Price Index (RMPI). It measures the changes in the price of raw materials bought by manufacturers in the country over the past month.

Binary options investors consider the RMPI to be an important leading indicator of consumer inflation in Canada. It is because if manufacturers pay more to buy raw materials, then ultimately the retail customers end up paying for the higher cost of production.

Last month, the Canadian RMPI decreased by -0.9%. Analysts are expecting it to increase by 0.9% this month.

AUD/CAD Forecast

AUD/CAD Analysis for Go Markets - 27th February 2018

The AUD/CAD formed a bullish pin bar on December 6, 2017. Since then, the pair has climbed up by around 420 pips. However, after reaching the 1.0000 level, it found a strong resistance. Over the last few weeks, the AUD/CAD remained range bound. Last week, it once again turned bullish and now approaching to re-test the resistance near 1.0000.

The Australian private sector credit is set to grow by 0.4% this month. On the other hand, the Canadian RMPI went down by -0.9% last month. Although analysts are expecting it to grow by 0.9%, it may fall short of the expectation. We believe, if this happens, it would set a bullish fundamental outlook for the AUD/CAD this week. Therefore, if the AUD/CAD closes above the resistance near 1.0000, it would likely attract additional bullish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 1.0000.

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Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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