Forex Flash: Canadian PMI delivers while RBA cut still on table – BBH
FXstreet.com (Barcelona) - Canadian Ivey PMI has come in at 58.3, better than expectations of 58.2 but down from 60.4 in September write Brown Brothers Harriman analysts.
They note that Canadian data has been softer in recent months leading to the BoC taking a less hawkish stance. The team believe that a break below 0.9900 is need to signal further USDCAD gains ahead while a break above parity would lead to a better technical outlook for USD.
Looking at the RBA decision last night the team still believe that a rate cut will follow sooner rather than later. Recent economic data has not been indicative of strength of Chinese nor domestic demand and they feel that the question is not if but when.
They note that AUDUSD is meeting resistance near 1.0445 which is the 62% retracement objective of the big December-October drop. They believe that a break higher would target the Sept 14th high near 1.0625 while a break lower opens the door to a move to 1.03.
They note that Canadian data has been softer in recent months leading to the BoC taking a less hawkish stance. The team believe that a break below 0.9900 is need to signal further USDCAD gains ahead while a break above parity would lead to a better technical outlook for USD.
Looking at the RBA decision last night the team still believe that a rate cut will follow sooner rather than later. Recent economic data has not been indicative of strength of Chinese nor domestic demand and they feel that the question is not if but when.
They note that AUDUSD is meeting resistance near 1.0445 which is the 62% retracement objective of the big December-October drop. They believe that a break higher would target the Sept 14th high near 1.0625 while a break lower opens the door to a move to 1.03.
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