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USD and CAD sink driving strong rallies, RBA to come

jeffriess
December 3, 2019
by Joseph Jeffriess, Market Analyst

Article Recap

EURUSD, AUDUSD and USDCAD rally together. - US Manufacturing PMI misses expectations - Australian interest rate and rate statement due at 14:30 AEDT today.

A night of mixed gains as the EUR, AUD and USD rally on different pairs.

We saw one of those nights when the USDCAD rallied with risk. The AUD and EUR jumped to the USD while it sunk to the JPY after weaker than expected US manufacturing PMI compounded the USD woes to most currencies. The EURUSD, AUDUSD broke downtrends but still have some work today to clear resistance points. Funny enough the USDCAD remains in the same position sitting at key resistance. situations like this are not that normal as normally the $Cad falls when risk is moving higher to the USD.

The AUD could have an interesting afternoon as the RBA will release their rates statement at 14:30 this afternoon, rates are expected to remain on hold but what hints could we see about future direction? Could hints at further cuts sink last night’s rally? Recent language suggests further holds but a note from Bill Evans suggested rates could be at 25 points in 2020.

Today’s video we take a technical view of last night’s moves looking at current resistance facing buyers on all three markets and look at the current market trend structure on the USDCAD.

Good trading from Eightcap.
All times are AEDT.