5:10 PM (NZT)
This week has seen some surprising one way out performance by the Australian dollar over the Canadian dollar. Interestingly it has come from a couple of factors. An air of vulnerability came onto the CAD following comments from the BOC that their bias would move back towards neutrality on monetary policy. This pressure coupled with solid AUD demand as the global risk appetite increased, eased the way for the AUD performance. However, further outperformance from the AUD from the current levels is unlikely to be easily produced. Resistance at 1.02501 remains solid, and the pair will have to do considerable work to break this resistance in the short term. Canadian inflation numbers later on today will provide the initial focus ahead of a reasonably important next week. Tuesday sees the release of the latest Canadian retail sales data ahead of the much anticipated BOC monetary policy meeting. Wednesday sees the 3rd quarter Australian inflation numbers announced and these come ahead of the BOC monetary policy report and press conference. Immediate price action from the current levels is not clear, if the resistance at 1.0250 breaks, another leg higher could ensue. If the resistance holds, a correction lower throughout next week seems likely. The direction will likely be driven by the tone taken from the BOC monetary policy reports.
The current interbank midrate is: AUDCAD 1.0213
The interbank range so far this week to date has been: AUDCAD .9993 - 1.0228