It remains to be seen whether the Canadian dollar, which has been performing strongly, will maintain its momentum during U.S. trading hours.

It remains to be seen whether the Canadian dollar, which has been performing strongly, will maintain its momentum during U.S. trading hours.

23.01.2024

In U.S. trading hours the previous day, the Canadian dollar weakened, causing the CAD/JPY pair to decline. The pair fell from 110.393 to 109.679, briefly dipping below the 75-period moving average on the hourly chart.On the higher-time-frame daily chart, a “band walk” along the +2σ line of the Bollinger Bands has been observed, and the RSI still has room to rise toward 70. We will closely monitor whether the Canadian dollar rebounds against the yen following a period of consolidation.

Ahead of the ECB meeting this Thursday, the euro strengthened during U.S. trading hours. The EUR/AUD pair rose from 1.6486 to 1.6569.The 10-day moving average on the daily chart acted as a support level. However, as the pair is showing signs of weakening again during today’s Asian trading session, we need to carefully assess whether the euro can regain momentum against Oceania currencies ahead of the ECB meeting the day after tomorrow.

Today, at 9:30, the Australian NAB Business Confidence Index; at 14:00, Japan’s supermarket sales and Singapore’s Consumer Price Index; at 16:00, South Africa’s Leading Indicator, Turkey’s Consumer Confidence Index, and the UK’s net public sector debt;at 4:30 p.m., Hungary’s Total Wages; at 5:00 p.m., Taiwan’s Industrial Production; at 10:30 p.m., Canada’s New Home Price Index; at midnight, the Eurozone’sConsumer Confidence Index, and the U.S. Richmond Fed Manufacturing Index; at 27:00, the U.S. 2-Year Treasury Auction; and at 6:45 the following day, New Zealand’s Q4 Consumer Price Index. We will carefully assess whether the Canadian dollar, which has been performing strongly, will maintain its momentum during U.S. trading hours.