AUDCAD Set to Test Resistance Near 0.9025 Amid Forecast of Falling Manufacturing Sales in Canada

Australia – CB Leading Index

On Monday, at GMT 3:30 p.m., the Conference Board Inc will release the month-over-month leading index for Australia. It measures the changes in the level of a composite index. This index is based on seven other major fundamental indicators.

The CB leading index aggregates some of the other indicator data. So, HighLow traders consider it as an important representation of the overall Australian economy. Most of these data are previously released. Hence, the CB leading index tends to have a minimized immediate market impact.

Last month, the CB leading index came out at 0.2%. If the positive trend continues, it will have a bullish effect on the Australian Dollar.

Canada – Manufacturing Sales

On Tuesday, at GMT 1:30 p.m., the Statistics Canada will release the month-over-month manufacturing sales data. It measures the changes in the total value of sales made by Canadian manufacturers over the past month.

Changes in manufacturing sales affect the manufacturers’ future decisions regarding hiring. It also affects corporate spending and overall investment climate in the country. Therefore, binary options investors consider the manufacturing sales data as a leading indicator of the Canadian economy.

Last month, the Canadian manufacturing sales figure decreased by 0.8%. Analysts are expecting it to decrease by -0.5% over the last month.

AUDCAD Forecast

AUDCAD Forecast - November 18 2019

The AUD/CAD formed a large bullish bar on October 2, 2019. It reversed the long-term downtrend. Consequently, over the last few weeks, the AUDCAD climbed up by around 285 pips. However, last week, it started a bearish retracement and fell near the uptrend line. Currently, it is trading just below the pivot zone near the 0.9025 level.

The Australian CB Leading Index went up by 0.2% last month and the positive trend will likely to continue. By contrast, analysts are expecting the Canadian Manufacturing Sales to go down by -0.5% over the last month. We believe it would set a bullish fundamental outlook for the AUD/CAD this week. Therefore, if the AUDCAD closes above the resistance near 0.9025, it would likely attract additional bullish momentum in the market.

Hence, High Low traders should look out for trading opportunities above this major resistance level around 0.9025.

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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