EUR/CAD is the ticker for the euro against the Canadian dollar. It tells traders how many Canadian dollars are needed to buy a single euro.
Both currencies are among the world’s ten most traded in terms of volume – with EUR being the second and CAD placing seventh.* But as the pair excludes the US dollar, it’s considered a minor or cross-currency pairing.
Canada is a net exporter of natural resources – particularly oil – so CAD is known as a commodity currency. This means that EUR/CAD is moved by commodity prices as well as central bank decisions and political announcements.
The December Core PCE print was in-line with expectations. Therefore, markets remain comfortable with pricing in the 98% chance of a 25bps rate hike on Wednesday.
The Australian dollar is commonly referred to as the Aussie. The AUD has grown in popularity over the past few years since it tends to have a higher yield than many other currencies in the developed markets, making it attractive for traders looking for yield. Additionally, it also tends to attract attention because of its strong links to commodities, as Australia is a large commodity exporter, and consequently their growing trade relations with Asia. As such, the AUD is also known as one of the major commodity currencies. AUD/USD is the most popular of the AUD crosses.
Price drivers
The Aussie can be influenced by several macroeconomic factors, such as the Reserve Bank of Australia (RBA) raising or lowering interest rates, GDP, employment figures, trade balance and inflation data. Rhetoric/comments from Australia’s central bank officials can also have a significant impact on the Aussie. The AUD/USD also tends to have a higher beta and is therefore more sensitive to rising or falling equity and commodity prices compared to other crosses. Consequently, traders will want to keep a close eye on the S&P500 in the US as well as the prices of gold and copper as they have a high positive correlation with AUD/USD.
Distance shows the difference between the pivot point and bid rate. It is calculated by subtracting the ask rate from the pivot point rate.
Bid
Ask
Daily
HIGH
LOW
Close
R3
R2
R1
S1
S2
S3
Weekly
HIGH
LOW
Close
R3
R2
R1
S1
S2
S3
Monthly
HIGH
LOW
Close
R3
R2
R1
S1
S2
S3
Understanding Pivot Points
Pivot points are used by traders as a predictive indicator and denote levels of technical significance. When used in conjunction with other technical indicators such as support and resistance or Fibonacci, pivot points can...Read More
