The BOC is about to print its latest policy decision!
Will today’s event knock AUD/CAD from a key area of interest?
Before moving on, ICYMI, today’s Asia-London session watchlist checked out ATOM/USD for short-term buying opportunities after a selloff that had nothing to do with the token’s fundamentals. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Upcoming Potential Catalysts on the Economic Calendar:
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What to Watch: AUD/CAD
After a steady couple of trading sessions, investors will turn their eyes on the Bank of Canada (BOC)’s monetary policy decision for September.
Word in the hood is that the downside economic impact of the Delta variant and the sooner-than-expected national elections have given the central bank the incentive to delay its tapering plans.
If BOC isn’t making changes, then the markets’ focus will turn to the central bankers’ outlook.
If BOC playas are expecting to get back in the tapering program after a short break, then AUD/CAD could dip from the .9370 resistance zone and hit support areas closer to .9300 or .9240.
But if Governor Tiff Macklem and his team air out their concerns over the Q2 2021 GDP miss and plan to delay their tapering further, then traders would highlight that the Reserve Bank of Australia (RBA) did a dovish taper in September.
The divergence between the BOC and RBA’s plans could push AUD/CAD above the .9400 resistance to maybe retest areas of interest like .9500 or .9550.