AUDCAD Chart Technical Outlook bounces up on strong Australian inflation but the broader trend remains neutral.
The Aussie and Canadian Dollar have been boosted by strong inflation reports this week. The Bank of Canada, however, has already started cutting rates, while the RBA might have to tighten them further, and that gives an advantage to the Aussie.
BoC Governor, Tiff Macklem has defended recently that the inflation is coming to target and might see May’s data as a temporary distortion. In Australia, Governor Bullock suggested the option of a rate rise, that will become more clear unless the outlook of inflation changes significantly ahead of the August meeting.
This week, the Australian consumer inflation figures, due on Thursday and Canadian monthly GDP data will be the main drivers for the pair. Next week we will have Australian PMI and retail sales data and Canadian employment figures.
From a technical perspective, the pair is showing a lack of clear direction. The expanding wedge developed since mid-May has an ev
