AUDCAD: Preparing to Enter Short
I am looking at AUDCAD as a way to gain exposure to relative Chinese vs US economic growth expectations. Australia and Canada are key commodity suppliers for China and the US respectively. Chinese GDP growth is forecast to slow in 2012 while that of the US is seen to accelerating. Prices are testing through support at 1.0645-58, a region marked by a rising trend line set from late November and the 23.6% Fibonacci retracement level. I will look to enter short on a daily close below 1.0645, initially targeting 1.0581 and 1.0519.
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