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The vast majority of retail client accounts lose money when trading CFDs.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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AUDCAD Extends Recent Gains From Improved Consumer Confidence

The AUD will see the latest Westpac consumer confidence numbers, and the Aussie dollar can add to recent gains. 

The AUDCAD exchange rate trades at 0.9272 and has resistance ahead at the 0.9500 level. 

AUDCAD – Weekly Chart

AUDCAD – Weekly Chart

There is the potential for a pullback along the way, but the trend looks strong and should head to the upper bound. 

The last reading of the Westpac consumer confidence number saw an all-time low of 78. Rising inflation, higher interest rates, and lagging wage growth have weighed on spending power in the country. The reading was also the most significant drop in two years, with a plunge of 6.8% compared to 0.9% in October. 

Australian inflation has surged to a 32-year high for the third quarter. At the same time, the Reserve Bank also forecasted that inflation could rise further for the rest of the year. The central bank hiked interest rates by 25 basis points in November, which also dented consumer confidence, even though the raise was smaller than previous moves by the RBA this year.

In another indicator, consumers are stressed about their personal finances in the lead-up to Christmas, with lower confidence. ANZ and Roy Morgan’s weekly consumer confidence indicator has dipped 0.5%, led by a 6.2% drop in its "current financial conditions" measure. The "future financial conditions" gauge also fell by 1.9%. ANZ head of Australia economics David Plank said it was common for consumer interest in buying big-ticket items to grow in the weeks before Christmas. 

Despite this, Canada’s economy is more at risk, according to the International Monetary Fund. The group says the Canadian economy faces a "mild recession" or worse. According to IMF predictions, unemployment will rise by 6.2% as inflation returns to roughly 2% by the end of 2024, which broadly aligns with forecasts from both the Bank of Canada and the Liberal government.

Last Updated: 12/12/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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