(MENAFN- DailyFX) Asia Pacific Market Open Talking PointsCanadian Dollar outperformed alongside theBritish Poundon Friday USD/CADcould be inching closer towards a reversal of its uptrend Asia Pacific equities may follow Wall Street higher as Yen weakens
Find out what the#1 mistake that traders makeis and how you can fix it!
The sentiment-linked Canadian Dollar outperformed against its major counterparts on Friday as risk aversion cooled into the end of the week. Canada's benchmark TSX Composite rose about 0.9 percent as Wall Street continued trimming losses from Wednesday when theDow Jones Industrial Averageexperienced its worst performance in a single day since 2018.
The rosy mood in financial markets, especially from North America, followed rising bets ofquantitative easing out of Europeand fading concerns of a'no-deal' Brexitthat lifted the British Pound as well. In the US, we saw fading intensity in the inversion of the 10-year and 3-monthyield curve . The United States is Canada's largest trading partner and fading concerns of a recession in the former could boostCAD .
Canadian Dollar Technical Analysis
Taking a closer look at USD/CAD reveals increasingly bearish signals that may reverse the near-term uptrend from the middle of July. A bearish Evening Star candlestick pattern formed under resistance (1.3318 – 1.3345) as negative RSI divergence emerged. The latter shows fading upside momentum that can at times precede a reversal. This places the focus on rising channel support (parallel red lines below).
USD/CAD Daily Chart
Chart Created Using TradingView
Monday's Asia Pacific Trading Session
With that in mind, a relatively quiet economic docket to begin the new trading week during Asia Pacific hours places the focus on risk trends absent sudden updates on the trade war front. APAC equities may echo gains from Friday's Wall Street trading session, perhaps further pressuring the anti-riskJapanese Yen . Meanwhile, the pro-risk Australian and New Zealand Dollars may aim cautiously higher
FX Trading ResourcesSee how theS & P 500is viewed by the trading community at theDailyFX Sentiment Page See our free guide to learn what are thelong-term forces driving Crude Oil prices See ourstudy on the history of trade warsto learn how it might influence financial markets!
--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com
To contact Daniel, use the comments section below or@ddubrovskyFXon Twitter
DailyFX
MENAFN1808201900760000ID1098897078
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.