AUD/CAD needs to extend gains above 0.9450/60 or downside risks will increase – Scotiabank

AUD/CAD rally rums out of momentum around 0.9450. The pair needs to extend its race higher above this region to enjoy further gains, economists at Scotiabank report.

AUD/CAD rally is starting to flag

“Choppier price action and waning bullish momentum suggest the AUD rally is starting to flag. A narrow range (so far) this week rather supports that impression.” 

“AUD/CAD is still finding demand on short-term dips but will have to extend gains above 0.9450/60 sooner rather than later (by next week, we estimate) in order to extend gains or downside risks will increase for a test of support in the mid-0.92s (40-day MA).”