If news on a currency pair for instance USDCAD, if a news on CAD comes out and its positive and causes CAD to strengthen and USD to sell, because USD is selling because of the Canadian news would it affect other pair like AUDUSD, would it strengthen it?
First of all, from my personal experience, if the news is for CAD, don’t do USDCAD. This is because they are somewhat siblings currency. If you take some time to read the market, whenever CAD is strenghten or weakning, USD will follow through the same sentiment also (most of the time I would say). It’s the same thing for AUD/NZD, EUR/CHF/GBP. The logical for me to think is that they are neighbour region. They are doing business to each other so it will affect to them as well.
If news came out for CAD and it’s weakening the CAD let’s say, USD usually would get weakening also somehow. In this case, it’s okay to buy AUDUSD. I’m not really get what you’re saying but I would assume that if this is what you mean?
Are you asking if positive USD news causes USDCAD to rise, will that also cause AUD USD to drop?
Or if USDCAD goes down, does AUDUSD go up?