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AUD/CAD pushing higher towards resistance levels

Written by Sam Coxhead on June 30th, 2011.      0 comments

3:05 PM (NZT)  The week so far has been an interesting one to say the least. The first Greek austerity vote of two(another one tonight) was positive overnight, and has added fuel to the demand for the AUD. The short term focus now seems to be shifting from the European debt issue to that of the US. Obama needs cooperation from the Republicans in Congress to get the US debt ceiling raised in order to make sure that the US has sufficient funds to make upcoming debt payments. Until this debt ceiling is raised the risk premium will build for the US dollar, and the CAD is being dragged lower with it, albeit at a slightly slower rate.
The AUD has outperformed the CAD in spectacular fashion over the last 24hours and we are fast approaching the significant resistance levels at 1.0400 in the interbank market.
These levels represent great value buying of CAD with AUD. I have been pointing out this move as an opportunity for those looking at making transfers from AUD to CAD.
The current rate for AUD/CAD is 1.0391.
This week has had an absence of domestic economic data in Australia and this has led to the lead being made from offshore. Next week is quite a different story with a flora on local data to be absorbed. In Australia there are Building Approvals, Retail Sales, Trade Balance, RBA cash rate (will be unchanged) and Employment numbers. In Canada there are employment numbers to provide focus. There will no doubt be continued volatility with the release of these numbers, and the ongoing debt related issues in Europe and the US. One strategy to take advantage of the volatility is the use of orders, please click here for more information on these.