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The core PCE price index and FOMC minutes are due!

Will these be enough to spur a bounce for USD/CAD?

Before moving on, ICYMI, today’s Asia-London session watchlist looked at a pullback setup on NZD/CHF ahead of the RBNZ decision. 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:

RBNZ hiked interest rates from 0.50% to 0.75% as expected

RBNZ Gov. Orr: Reopening of NZ economy does not change policy outlook

RBNZ OCR track upgraded to 2.6%, not as aggressive as 3.0% consensus

API reported surprise build in crude oil inventories after SPR release

Japanese PM Kishida confirmed plans to release oil reserves

Upcoming Potential Catalysts on the Forex Economic Calendar:

U.S. preliminary GDP at 1:30 pm GMT
U.S. headline and core durable goods orders at 1:30 pm GMT
U.S. core PCE price index at 3:00 pm GMT
EIA crude oil inventories at 3:30 pm GMT
FOMC meeting minutes at 7:00 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: USD/CAD

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

This pair is perched right on a short-term rising trend line and area of interest visible on the hourly chart.

Can the upcoming catalysts from the U.S. spur a bounce?

Uncle Sam has the preliminary GDP for Q3, as well as the core PCE price index lined up for today.

Analysts expect the growth figure to be upgraded from 2.0% to 2.0% while the Fed’s preferred inflation measure could tick higher from 0.2% to 0.4%.

If that’s the case, dollar bulls could charge and take USD/CAD back up to the swing high near the 1.2750 minor psychological mark and beyond.

Technical indicators are also suggesting a continuation of the rally, as the 100 SMA is above the 200 SMA while Stochastic is pulling higher from the oversold region.

If you’re trading this one, don’t forget to keep tabs on the EIA crude oil inventories release also. Earlier on, the American Petroleum Institute already reported a surprise build in stockpiles, so a similar read from the EIA might spur a selloff for the correlated Loonie.