AUD/CAD Rallies to 11 Month Highs

AUD/CAD Daily Chart

AUD/CAD reached fresh multi-month highs in early trading on Wednesday, reaching the highest levels since April of 2017.

A Golden Cross pattern (bullish crossover of the 50 and 200 period simple moving averages) formed in late February, ushering in a sharp up move in price.

The recent uptrend began in December of 2017 and now price is powering towards the prior highs of 1.0257 and above that 1.0321, which form potential resistance above.

RSI is curved upwards, reflecting an increase in upward momentum as it crosses the 70 level.

From a fundamental perspective, trade tensions and dovish comments from Bank of Canada Governor Stephen Poloz have applied downward pressure on the Canadian dollar.

Meanwhile, the Australian dollar was buoyed after the strong US jobs report for February. The data cast doubts over the need for the US Federal Reserve to raise interest rates four times this year, putting pressure on the greenback and sending alternative assets higher.

The Aussie was also boosted on Wednesday as Chinese industrial production soundly beat forecasts in February.