The AUDCAD currency pair rose on Friday after a weekly decline of 1.70%. This dynamic is due to the key economic indicators from Australia, published on Thursday. The continental country’s labor market data showed an increase of 15,900 jobs, which is below the forecast of 25,000 and the previous level of 61,300. Slowing labor demand reduced concerns about the sustainability of price pressures in the long term. The unemployment rate was in line with expectations at 4.1%.
The Australian dollar remained resilient to mixed economic data from China, a key trading partner. Retail sales in the country rose 4.8% year-on-year in October, exceeding the forecast of 3.8% and September’s 3.2%. However, industrial production rose 5.3%, below the expected 5.6% but above the previous level of 5.4%.
On Wednesday, Canada’s Consumer Price Index from Thomson Reuters rose to 49.72. This reinforced AUDCAD’s downward movement in the mid-week. Today, investors look for the publication of sales data in the manufacturing sector in Canada, which may contribute to the recovery of the currency pair from three-month lows.
According to the technical analysis, AUDCAD is forming an uptrend on the D1 timeframe. The price rebounded from the trend channel support, signaling a potential continued growth in an uptrend. The Stochastic Oscillator (with settings of 5, 3, 3 Simple) entered the oversold zone. The curves exit from this zone may strengthen the growth of the pair.
Short-term prospects for the AUDCAD currency pair suggest buying with the target of 0.9300. Part of the profit should be taken near the level of 0.9180. A Stop loss could be set at 0.8970.
Since the bullish trend is short-term, the trading volume should not exceed 2% of your total balance to reduce risks.
