AUDCAD Analysis
AUDCAD reached the major resistance area and the higher high area of the channel.
AUDCAD Update
AUDCAD is consolidating at the major resistance area which leads to the SL price. However, AUDCAD still have chances to fall from the major resistance area.
Reason: Due to the release of more economic news mentioned below, the market is not making technical movements at this time.
Why AUD is Stronger
Rising commodity prices & global growth optimism – Australia is a major commodity exporter, so higher commodity prices and positive global growth outlook increase demand for the AUD.
Expectations of an RBA rate hike – Strong inflation data in Australia has raised expectations that the Reserve Bank of Australia may hike interest rates in February, making the AUD more attractive to investors.
Why CAD is Weaker
Use of Quantitative Easing (QE) – When the Bank of Canada prints money to buy bonds, it increases the supply of Canadian Dollars, which typically weakens the CAD.
Lower investor confidence in currency value – QE tends to push down bond yields and reduce returns for investors, making the CAD less attractive compared to other currencies.
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