FxWirePro: AUD/CAD Finds Strong Support by 21-DMA at 0.9446, Weakness Only on Break Below
- AUD/CAD halts upside, slips lower from fresh 3-week highs at 0.9527 hit on Wednesday.
- Heavy selling in the Asian equities weigh on the investors’ appetite for risky/ higher-yielding currencies such as the Aussie, hence upside looks limited.
- Data was mixed, Australia Retail Sales for April came in at +0.2% m/m versus +0.3 previous, although missed expectations of +0.3%, while April trade deficit decreased to 1.579mln versus expected deficit of 2100mln, as compared to -216mln last.
- The pair finds strong support at 0.9446 (21-DMA) and then trendline at 0.9430.
- Weakness only on break below 0.9430, pair could then see test of 0.9360 levels.
- Resistance on the upside seen at 0.9496 (23.6% Fib) and then 0.9527 (June 1st highs).
- Focus remains the US ADP jobs data and EIA crude supplies, which will provide fresh momentum going forward.