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Canada is printing its retail sales data!

Can today’s release help get the Loonie gain advantage against its fellow comdolls?

Before we talk setups, here are the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Fed’s Evans “more open-minded” to 2022 interest rate hike

Fed’s Bostic shares it’s appropriate to “try to normalize” interest rates by summertime 2022

Higher energy costs caused Japanese consumer prices to edge up for a 2nd month in October

Japan PM Kishida unveils $490bn stimulus package

Asian shares down as Alibaba’s slide reignites China worries

GfK: U.K. consumer confidence rises in November after three months of decline

German producer prices rise at fastest annual pace in almost 60 years

UK retail sales rise for the first time in 6 months

European shares ended lower on oil and metal weaknesses

Upcoming Potential Catalysts on the Forex Economic Calendar:

ECB President Lagarde to give opening remarks in Frankfurt at 8:30 am GMT
Eurozone current account balance at 9:00 am GMT
German Bundesbank President Weidmann to give a speech at 1:00 pm GMT
Canada’s retail sales numbers at 1:30 pm GMT

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: NZD/CAD

NZD/CAD 1-hour Forex Chart
NZD/CAD 1-hour Forex Chart

Canada is printing its retail sales data today!

Word around is that we may see a 1.7% dip (from +2.0%) for the headline figure while core retail trading could slip from 2.8% to -1.0% in October. The annualized reading may even slow down from 8.4% to 6.0%!

Weaker-than-expected retail numbers could kickstart NZD/CAD’s short-term bullish reversal after it broke above a descending channel.

If you’re just tuning in, know that some traders are already pricing in a rate hike for the Reserve Bank of New Zealand’s meeting next week.

With an average daily volatility of 60 pips, an anti-CAD move could propel NZD/CAD to the .8900 area.

If Canada’s retail activity comes in stronger than what markets are expecting, however, then NZD/CAD could dip to the broken channel resistance closer to the 38.2% – 50% Fibs and the 100 and 200 SMAs on the 1-hour time frame.