Commodity Currencies Reach New Lows
The rally in Bitcoin, meme coins, and the US dollar that followed Donald Trumps presidential victory continues to gain momentum. The tariff cuts announced by the new president-elect have already contributed to declines in gold and commodity prices. Combined with the potential for heightened trade tensions with China, the current environment is pressuring currencies such as the AUD and CAD.
USD/CAD
Yesterday, USD/CAD buyers managed to test the psychological resistance level at 1.4000. The pair has long traded within the range of 1.39601.3800, but it has recently broken above this channel to reach a two-year high at 1.3960. Technical analysis points to the potential for further gains towards 1.42001.4300, provided the 1.40001.3960 levels hold as support. A downward correction, however, could bring the pair back to 1.39601.3900.
Key events likely to impact USD/CAD pricing today include:
- At 16:30 (GMT +3:00): US Initial Jobless Claims.
- At 16:30 (GMT +3:00): US Producer Price Index (PPI) for October.
- At 19:00 (GMT +3:00): Weekly US crude oil inventory report.
AUD/USD
Early in this trading week, AUD/USD sellers broke through a significant range at 0.65200.6500. The next potential support area is around 0.64700.6440. Should the pair break below these levels, new yearly lows around 0.6350 are possible. If an upward correction begins, the pair may rise towards 0.65200.6540.
Key events affecting AUD/USD include:
- At 23:30 (GMT +3:00) today: Remarks by US Federal Reserve Chair Jerome Powell.
- Tomorrow at 05:00 (GMT +3:00): Thomson Reuters/Ipsos Primary Consumer Sentiment Index (PCSI) for Australia for November.
- Tomorrow at 05:00 (GMT +3:00): Press conference by Chinas National Bureau of Statistics.
Read more: https://fxopen.com/blog/en/ru-commodity-currencies-reach-new-lows/
Text source: Forex Trading Blog
