AUDCAD

Pressuring the AUDCAD currency pair in the New York session was optimistic data for the Canadian economy.  With releases being viewed as typically lackluster over the past couple of months, today’s housing prices report injected some much needed volatility into the loonie.  Citing the fastest rate of increase in housing since 1989, Statistics Canada released figures that topped consensus estimates and laid the groundwork for further speculation that the economic slowdown may not be as bad as previously estimated.  For the monthly comparison, the report increased by 1.5 percent.  Subsequently, this boosted the overall annualized figure by 12.1 percent with areas like Alberta seeing increases of 61 percent.  A simple shortage seems to be attributed to the climb with higher wages adding to the overall support valuation.

The day’s advance compares to what would have been an Australian dollar led day following comments by newly appointed Reserve Bank of Australia Governor Glenn Stevens.  In his first speech since taking the head role on, Stevens stated the need for central bankers to remain watchful of inflation clarifying that further emphasis will be placed on near term economic reports.  Given the string of consecutive suggestions of expansion in the Pacific Rim economy, the comments fed further speculation of near term rate hikes as the economy continues to sport a 4 percent rate of inflation.

Testing the channel trendline support, the AUDCAD is expected to consolidate heading into the Asian hours.  The current support correlates with support at the 0.8441 figure (23.6 percent fib from the day’s move higher).  With stochastic already dipping well below the overbought level, favor is siding with a topside advance as bulls continue to eye the even 8500 handle.  However, failure here would give bears enough reason to pounce till support floors are established at the 0.8393 floor (61.8 percent fib from the session advance).