BoC Policy Decision, NZ CPI and AU Jobs Data in Focus

BoJ Stands Pat, BoC Takes the Central Bank Torch

The dollar reversed south against all but one of the other G10 currencies on Tuesday and during the Asian morning Wednesday. It lost the most ground versus SEK, NOK, AUD, and EUR, while it eked out some gains only against JPY.

EUR/CAD — Technical Outlook

From the beginning of this week, EUR/CAD had been moving rapidly to the upside, until it found resistance near the 1.5538 hurdle, after a test of which it started correcting lower. There is a chance to see a bit more movement to the downside, however let’s not forget that the pair is still trading above a short-term tentative upside support line taken from the low of July 3 rd, which may continue providing support for the rate. This is why we will stay somewhat positive, at least for now.

New Zealand CPI and Australia’s Employment Report in Focus

Two currency that tend to be very responsive to chances in the broader investor morale are the Kiwi and the Aussie. However, tonight, traders of those risk-linked currencies may also pay attention to New Zealand’s CPI for Q2, as well as Australia’s employment data for June.

AUD/USD — Technical Outlook

From the beginning of July, AUD/USD is seen moving sideways, roughly between the 0.6922 and 0.7000 levels, which form the lower and the upper bounds of the range. At the same time, we can draw a short-term tentative upside support line taken from the low of June 30 th, which suggests that there is a good chance the pair may travel higher in the near term. For now, we will take a cautiously-bullish approach, as the rate is currently closer to the upper bound of the aforementioned range.

As for the Rest of Today’s Events

During the early European morning, we already got the UK CPIs for June. The headline rate ticked up to +0.6% yoy from +0.5%, instead of sliding to +0.4% as the forecast suggested, while the core rate rose to +1.4% yoy from +1.2%. The forecast was for the core rate to stay unchanged.

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