AUDCAD and FOMC, what is the link between the two?

22 Mar 2023

Hey Traders, Today we are coming across an important event which is the FOMC, so what is the link between the rates decision and AUDCAD? the rates decisions have an impact on the AUDCAD since the american indices have a positive correlation with AUDCAD, if the meeting today is dovish that means we will have more of a week Dollar, Bullish indices and high probably AUDCAD upsides, in case Fed surprises us with some hawkish comments due to banking sector crisis that will give us more of a strong Dollar, bearish indices since USD and indices are negatively correlated and more probably downsides on AUDCAD. Technically we are watching a retrace of a potential breakout that is more likely to happen if we have a dovish statement (0-25 bps) followed by fed speaking (dovish comments).
Feel free to ask any question in the comment section!