The USD/CAD currency pair continued its upward trajectory during the North American session, rising 0.27% on Friday and posting a weekly gain of over 1.34%. At the time of reporting, USD/CAD traded at 1.4175, having rebounded from a daily low of 1.4131. Technical indicators show strong bullish momentum, with the Relative Strength Index (RSI) at an elevated 86.45, suggesting the pair is overbought and may be due for a pullback. Key resistance is identified at 1.4200, with further upside targets at 1.4273 and 1.4415 if the rally continues. On the downside, a drop below 1.4150 could see the pair test support levels at 1.4100, 1.4024, 1.3994, and 1.3899. The Canadian Dollar was the strongest against the New Zealand Dollar this week, while the US Dollar gained 0.45% against the Canadian Dollar over the same period [1].
Meanwhile, the AUD/USD pair traded little changed around 0.7011 on Friday, remaining on track for a weekly loss. The pair's muted movement was attributed to offsetting hawkish policy signals from both the Federal Reserve and the Reserve Bank of Australia, as both central banks kept interest rates unchanged but indicated openness to future hikes amid persistent inflation. Technical analysis reveals a bearish near-term bias for AUD/USD, with the spot price below the 20-day Simple Moving Average (SMA) at 0.7091 and the RSI at 37, indicating ongoing bearish momentum. Immediate resistance is seen at 0.7091 and 0.7220, while support lies at 0.6963 and 0.6852. The US Dollar was the strongest against the Swiss Franc today, while it gained 0.25% against the Canadian Dollar and was unchanged against the Australian Dollar [2].
Looking ahead, traders are focused on upcoming economic data releases, including the Australian Consumer Price Index (CPI), labor market data, the US Personal Consumption Expenditures (PCE) Price Index, and the final reading of US Q1 GDP. Additionally, global Purchasing Managers Index (PMI) surveys and the People's Bank of China's interest rate decision are on the radar, with the Australian Dollar particularly sensitive to Chinese economic developments due to close trade ties [2].
CONCLUSION
USD/CAD maintains a strong uptrend with bullish technical signals, while AUD/USD remains range-bound amid competing central bank outlooks. Market participants are closely watching upcoming economic data for further direction, with both pairs poised for potential volatility depending on future policy signals and macroeconomic releases.