AUD/CAD chart - Trading View
AUD/CAD slumps over 0.80% on the day to hit 4-month lows, bias strongly bearish.
The pair has broken strong support at 110-EMA and is currently hovering around 23.6% Fib at 0.9311.
Technical analysis support further weakness in the pair. Price on track to test 200-DMA support at 0.9176.
Australian dollar has been under pressure following comment's from RBA governor Philip Lowe and poor China inflation data.
Lowe's comments stoked possibility for the Reserve Bank of Australia to cut interest rates to support the economy.
Further, China's price pressures for both producers in the PPI and consumers in the CPI have missed expectations adding pressure on the commodity currencies.
Immediate support for the pair is seen at 23.6% Fib at 0.9311 ahead of 110W EMA at 0.9299. While resistance aligns at 110-EMA at 0.9405 and then 5-DMA at 0.9418.
