AUDUSD and the NZDUSD rallied on strong Aussie retail sales, RBA and the hawkish RBNZ statement on Tuesday. The pound dented as Brexit talks stall. The US dollar rose against MXN 0.85%, CHF 0.30%,CAD 0.20%, EUR 0.35% and GBP 0.30%.
Commodities were beaten down. Gold retested the support level again down 0.85%, low 1260.50. Copper nearly completed the bearish H&S pattern target down 4.50% . CAD marginally down against AUD and NZD, but a rebound will come today (Wed).
What’s on today?
- Aussie GDP for Sep quarter (11.30AEDT):
For the 3Q we forecast 0.7% growth. The Australian 2Q economy grew strongly by 0.8% up from Q1 0.3% .
2Q growth led by Household final consumption expenditure increased 0.7% and government final consumption expenditure increased 1.2%.Exports of goods and services rose 2.7% for the quarter.
A big uptick could expect if GDP printed above 0.7%. Our main focus remains on AUDNZD and AUDCAD. Both favors sell on rallies.
- Boc Rate statement (10.00 ET)
On Wednesday, December 6, 2017, the Bank of Canada will announce its decision on the target for the overnight rate. A press release will provide a brief explanation of the decision.
It is widely expected the Bank of Canada to be on hold 1.0% policy interest rate. The market is pricing another hike post-March/April 2018. The BoC will retain the Positive outlook on the domestic economy. Besides BoE policy settings the CAD expose headline risk to NAFTA.
Our near-term bearish focus remains on AUDCAD, USDCAD and NZDCAD.
Chart of the day: AUDCAD. 0.9600 and even 0.9550 possible.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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