The rate of the AUD/CAD continues in the frames of an upward trend. The Canadian dollar remains under the pressure of low oil prices. Volatility for this currency pair remains very high. Early May brought disappointing statistics about the economy of Australia and China which has led to a significant falling of the AUD value. During a single day it lost 2 CAD cents. This was due to the influence of the data about the trade balance of Australia. Investors expected the growth of the surplus to be 3.4 billion while it was just 3.1 billion; another disappointment was the value of the business activity index in the services sector in China.
By the end of next week the volatility in the market can decrease. The market doesn't expect any important data until next Friday. That is when the market will receive information about retail sales and consumer prices in Canada for April. The day before we also expect information on employment in Australia for April. It should also be noted that this month there will be an important OPEC summit and volatility will be gradually increasing together with the oil prices. This can strengthen the CAD because it is expected that at the upcoming meeting countries-exporters will extend their agreement about a reduction in oil extraction. Therefore, oil prices will rise for some time, but countries which didn't join the agreement, mainly the US, will likely not allow oil to rise significantly in price for a long period because if prices increase the USA increases its volume of oil production, adversely affecting the market.
Oscillators are neutral at the moment, but considering the perspectives of oil prices growth in the near future, and consequently the strengthening of the Canadian dollar, the optimal solution now is to open the deals to SELL in medium-term trading. In short-term trading it is also possible to open the deals on the trend.
