FX.co ★ Commodity currencies gain strength

The Canadian dollar is gaining strength against the US dollar. Yesterday's positive data, along with the recent rise in oil prices, led to the likely formation of a new upward wave in the Canadian dollar.

According to the report of Canada Mortgage and Housing Corp., housing starts in Canada for the month of August this year rose by 0.6% compared to July and amounted to 223,232 homes. The data was better than the forecasts of economists, who expected that number to amount to 215,000 homes.

Undoubtedly, the growth of this indicator is a good sign of consumer confidence.

Support for the Canadian dollar is also provided by oil prices, which at the end of last week significantly increased. This was due to the positive mood of investors. The increase in interest rates by the Bank of Canada last week also cannot affect the medium-term growth prospects for the Canadian dollar.

As for the technical picture of the USD / CAD pair, the breakthrough of support at 1.2080 could lead to the formation of a larger downward wave in the trading instrument with the update of new lows in the areas of 1.2030 and 1.1975.

The Australian dollar fell today at the beginning of the Asian session against the US dollar, after data was published indicating a drop in consumer confidence in the country last week.

According to the report of ANZ and Roy Morgan, the consumer confidence index fell by 3.8% compared to the previous week. The decline was directly related to the fact that households have become more pessimistic about the outlook for the Australian economy.

Despite this, at the beginning of the European session on Tuesday, a number of commodity currencies strengthened against the US dollar. Their example was followed by the Australian dollar. A breakthrough and an exit to the resistance level of 0.8055 may return the AUD/USD pair to resistance level of 0.8100 and lead to an update to 0.8140.

The euro fell against the US dollar on Monday, as statements by the representative of the European Central Bank about the rate of the euro caused some traders to get nervous.

Yesterday, Benoit Coeure drew attention to the strengthening of the euro, which is likely to affect GDP growth, while warning that strengthening it could also lead to a slowdown in inflation in the euro area and a weakening of exports. All these components can influence the further plans of the regulator regarding the curtailment of the asset repurchase program at the beginning of next year.