Canadian CPI Up Next
The key data focus heading into today’s US session is the release of September’s Canadian CPI. On the back of the weaker-than-forecast UK CPI today, the market is now eager to see how prices performed last month in CAD. Headline CPI is forecast to rise 0.1% on the month, down from 0.2% a month prior. Meanwhile, annual median inflation is forecast to remain unchanged at 2.6% and trimmed unchanged at 3.3%. Readings in this region should be enough to keep hawkish BOC expectations intact, especially given the outlook for oil prices. However, should data disappoint, this might see some near-term unwinding in CAD.
Where to Trade Canadian CPI?
AUDCAD
The current price action in AUDCAD suggests a basing pattern is forming, with risks of a fuller upside reversal in the near term. Price is currently testing the bearish trend line from YTD highs as well as the .9267 resistance. With strong bullish divergence into recent lows and with the retail market more than 70% short, there is room for a break higher here targeting .9391 initially.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.