Just a few days before the release of July GDP (September 30), the CAD experiences a downtrend. The forecasts predict that the report would show the 0.1% slowdown of the growth after 10 straight months of growth. It should be noted that Canadian GDP is a monthly index as opposed to GDPs of other countries where GDP is a quarterly index. Now the CAD stands at CAD 1.0350 against USD, which is CAD's short-term resistance. In the past two weeks two weeks the pair has been experiencing high volatility bouncing between 1.0350 and the 1.0215 support. In US traders are waiting the final Q2 US GDP report due on Thursday. Encouraging US indices and sluggish Canadian indicators might cause the CAD resistance to be broken, while the next resistance is being far away at CAD 1.0510.

AUD/CAD – 0.9900

AUD is also getting strength against CAD standing at this year record of 0.9900, which is also CAD's long-term resistance. AUD's upward trend started in May when the pair stood at 0.8640, AUD's strong support unbroken by CAD since March 2009. If AUD's upward trend continues, the pair might cross the CAD 1.000 line for the first time since 2004.