November 08, 2021
AUD/USD: Australian dollar has hardly changed against the US dollar on Friday and finished the week lower. Growing concerns over rising inflation and its impact on the global economic recovery weigh on the traders’ sentiment, because major central banks, including the Reserve Bank of Australia, refrained from making a move on the interest rates in the previous week. The RBA discontinued its policy of yield control on Tuesday and mentioned the possibility of an earlier increase in the cash rate target in 2023 instead of 2024. The local support level can be seen at 0.7380. A breakout below could take the pair towards 0.7335.
USD/CAD: The Canadian dollar was little changed against its US dollar counterpart on Friday. Domestic jobs data supported expectations for the Bank of Canada to begin hiking interest rates over the coming months. The Canadian economy added more than 31 thousand jobs in October. This is the fifth straight month of gains. The unemployment rate slipped to the lowest since the COVID-19 pandemic started. US data showed that despite the labor shortage and pandemic dislocations the economy retains a strong base. Purchasing Managers’ Indexes for services and manufacturing from the Institute for Supply Management improved in October. The New Orders were strong and Prices Paid indicated building inflation pressures. Initial Jobless Claims fell to almost their level in the weeks before the pandemic hit last March. Nonfarm Payrolls rose in October. The local resistance level can be seen at 1.2475. A breakout to the upside can trigger growth to 1.2520.
BRENT: Oil prices rose on Friday due to renewed supply concerns after OPEC plus producers rebuffed the US call to accelerate output increases even as demand nears pre-pandemic levels. A day after Saudi Arabia raised its official crude prices for all buyers. This move is a signal that demand remains strong. Crude has risen this year. This was fanning inflation and lifting product prices because the roll-out of vaccines boosted mobility and stoked energy demand. Additional consumption has been driven by a crunch in gas supplies. The local support level can be seen at $83.10. If the price reaches this level and rebounds from it, it can be considered as a trigger to further growth towards $86.05.