There is high volatility today. Investors are waiting for the decision of the Bank of Canada about raising the interest rate. Probably this issue will be postponed until December.
The AUD/CAD continues in the frames of a weak downward trend. The only thing that has changed over the last month is a shift of the support line down. The resistance hasn't changed for a while despite a number of signs of a new uptrend that can be seen on the chart.
Today is full of events for the AUD/CAD currency pair, which led to a sharp increase in volatility in the market. Since the beginning of the day the Australian dollar has come under pressure due to recent negative news about the Australian economy: the inflation rate in the 3rd quarter was only 0.6%, which does not match the expectations of analysts. The inflation rate in annual terms was 1.8% against the expected 2%. The weighted average consumer price index was also below the forecasted level. Therefore, the value of the AUD fell sharply against major currencies.
At the moment, investors are waiting for the decision of the Bank of Canada about the interest rate. Though, investors suppose that increasing them will be postponed until December. Also important is the report of the Central Bank about further monetary policy. Last week the CAD was under pressure due to falling retail sales, while economists were expecting growth. The rate of inflation has slowed down. The Australian dollar, in contrast, received support, mainly due to recent data about the economy of China.
