Forex
Home›Forex›Major Pairs›AUD/CAD jumps above triangle as RBA turns more hawkish
AUD/CAD jumps above triangle as RBA turns more hawkish
The move follows an RBA hold at 4.35% on Aug. 11 and comes as crude prices rise on geopolitical supply concerns, a factor that can support the Canadian dollar.
On Aug. 19, Reserve Bank of Australia Deputy Governor Andrew Hauser took a more hawkish tone, saying another rate increase could be needed if inflation risks the central bank flagged start to materialize. Those risks include the conflict in the Middle East, stronger demand tied to the AI sector, and weak productivity, according to Action Forex.
The comments followed the RBA’s Aug. 11 decision to keep its policy rate unchanged at 4.35% for a second straight meeting. For the Canadian dollar, Action Forex said oil prices are a more important near-term driver, with crude rising this week amid heightened geopolitical tensions and concerns about possible supply disruptions.
In technical analysis, Action Forex described a medium-term sideways AUD/CAD range since April, forming a broadening triangle on the four-hour chart. On Monday, Aug. 24, trading opened with a gap above the triangle’s upper boundary, and the next upside obstacle is the 0.9925 red resistance level.
The analysis also laid out key levels if the breakout fails, including the upper profile boundary at 0.9850, a point of control near 0.9832, and a lower profile boundary at 0.9815. Below the triangle’s main area, a green support zone sits around 0.9785, while RSI and moving averages are cited as leaving the gap’s sustainability uncertain.
Latest closeWTI crude $82.40 ▲1.4%