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All eyes will be on major central bankers in the next trading sessions!

Check out AUD/CAD’s 1-hour chart and see if today’s catalyst can extend the pair’s uptrend!

Before moving on, ICYMI, yesterday’s watchlist checked out USD/CHF’s range support ahead of this week’s closely-watched U.S. economic releases. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Tokyo inflation hits 4% y/y, pointing to stronger-than-expected uptrend

Japan’s November household spending falls 1.2% y/y, its first decline in six months

BRC: U.K.’s retail sales jump from 4.1% to 6.5% y/y in December but still mark the 9th consecutive month of falling volumes

Asia shares dip on hawkish Fed remarks; recession risk weighs on commodities

Oil slips on concerns higher interest rates to crimp demand

Dollar sluggish as Fed rate hike fears ebb

France’s industrial production up by 2.2% m/m (vs. 0.8% expected) in November

Upcoming Potential Catalysts on the Forex Economic Calendar:

BOC and BOJ Governors Macklem and Kuroda to participate in a panel discussion at 10:10 am GMT
Fed Chairman Powell to participate in a panel discussion at 2:00 pm GMT

Australia’s inflation reports at 12:30 am GMT (Jan. 11)

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: AUD/CAD

AUD/CAD 1-hour Forex Chart

AUD/CAD 1-hour Forex Chart by TradingView

AUD has been losing pips against CAD since the start of the week when concerns about the Fed raising its interest rates overshadowed headlines about China reopening its economy.

Let’s see if the tides turn in favor of AUD today as Bank of Canada (BOC) Governor Macklem and Fed Chairman Powell participate in a panel discussion.

Take note that Powell and his team have been hinting that their interest rates can hit 5% and stay high in the foreseeable future. Meanwhile, BOC has been hinting of pausing its interest rate hikes.

If traders choose to focus on China’s reopening and overall risk appetite, AUD/CAD could bounce from its mid-channel area and find support from the 1-hour chart’s 100 SMA.

The pair could revisit its highs near .9300 or even make new monthly highs.

Extended risk aversion, on the other hand, could mean further AUD weakness.

Look out for a breakout below the mid-channel support zone that we’re watching, which could drag AUD/CAD to the .9150 previous support zone.