AUDCAD corrects in anticipation of new growth drivers

22 December 2023 94
AUDCAD corrects in anticipation of new growth drivers

The AUDCAD currency pair is moderately declining on Friday as the Canadian currency rises due to the release of retail sales data.


Canada saw a 0.7% increase in retail sales in October compared to the previous month, with sales increasing even more strongly in volume terms. However, preliminary data for November indicates no growth, suggesting a less optimistic trend.


At the same time, some 53% of Canadians believe their personal financial situation has worsened compared to 2015, when Justin Trudeau became prime minister, promising to help the middle class and those who want to enter it.


A survey conducted by Nanos Research for Bloomberg News found that only 24% of Canadians feel their financial situation has improved, while 21% have not noticed a change. This deterioration is due to rising inflation and higher interest rates. This is especially hard on people with high debt. Many cite the high cost of living as a key issue affecting their election choices.


According to the latest data from Statistics Canada, there was an increase in consumer prices in November 2023. Annual inflation increased by 3.1% compared to the same period the previous year.


Prices were up 0.1% on a month-to-month basis in November. Excluding the cost of food and energy, inflation accelerated to 3.5% from 3.4% in October.


Meanwhile, the Australian currency is under pressure for the second consecutive session due to its close ties with China. The Chinese economy is facing difficulties amid a growing crisis in the construction sector.


Housing sales will shrink by 1.8 trillion yuan (about $251 billion) this year at the current rate of decline, according to Bloomberg calculations based on official data from China's construction sector.


AUDCAD quotes are moving within a narrow corrective pattern on the H4 timeframe.


In terms of wave analysis, the price is currently forming the third ascending wave on the H1 timeframe. Breaking through the top of the first wave at 0.9060 will strengthen the upward movement.



Short-term prospects for AUDCAD suggest buying

The target is at the level of 0.9170.

Part of the profit should be taken near the level of 0.9060.

A stop-loss could be placed at the level of 0.8920.

The bullish trend is short-term, so trade volume should not exceed 2% of your balance.

This content is for informational purposes only and is not intended to be investing advice.

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