The AUDUSD pair soared to the highest level in more than two months as economists cast doubt on the Reserve Bank of Australia (RBA) rate hike target. The minutes of the October meeting showed that officials believe that the bank will hike interest rates in 2024. However, most analysts believe that the bank will move earlier than that. Besides, the unemployment rate is expected to retreat as the country reopens while inflation is rising. The prices of most items, especially energy, have risen in the past few weeks. Also, home prices have soared to a record high and there are concerns that a prolonged period of low rates will lead to a bubble.
The GBPUSD pair held steady in early trading as investors waited for the latest UK consumer inflation data that will come in the morning session. Analysts expect the data will show that the headline consumer price index (CPI) rose from 3.2% in August to 3.4% in September. Similarly, the core CPI is expected to have eased slightly from 3.1% to 3.0%. Still, in the near term, the UK inflation will keep rising as the country goes through its worst energy crisis in years The country is also going through major supply chain disruptions that have led to higher prices.
The USDCAD price is hovering near its lowest level since July as investors react to the rising oil prices. The price of crude oil has risen to more than $84 and there is a likelihood that the trend will continue. Higher oil prices tend to support the Canadian dollar due to the volume that the country exports. At the same time, the pair is falling ahead of the latest Canadian inflation data that will come out in the afternoon. Analysts expect the data to show that Canadian inflation rose from 4.1% in August to 4.3% in September.
USDCAD
The USDCAD pair declined to a low of 1.2300 in the overnight session. The pair is now trading at 1.2365. On the four-hour chart, the pair is still substantially below the 25-day and 50-day moving averages. The MACD has also moved below the neutral level while the price is substantially below the key resistance level at 1.2492. Therefore, the pair will likely continue dropping as bears target the key support at 1.2400.
EURUSD
The EURUSD pair made a small pullback overnight. It is trading at 1.1640, which is slightly below this week’s high of 1.1670. This price was along with the 38.2% Fibonacci retracement level. It has also moved above the 25-day moving average and the support at 1.1625. The MACD is comfortably above the neutral level. Therefore, the pair will likely continue rising as bulls target the 50% retracement at 1.1720.
GBPUSD
The GBPUSD held steady as traders wait for the upcoming UK inflation data. The pair is trading at 1.3800, which is a few points below this week’s high of 1.3837. The pair is being supported by the short and long-term moving averages while the Relative Strength Index (RSI) and MACD have been rising. Therefore, the pair will likely keep rising as bulls target the key resistance at 1.3950.
