AUD to CAD – Canadian Dollars to Australian Dollars
When converting Australian Dollars to Canadian Dollars (AUD to CAD), or CAD to AUD, by exchanging via Direct FX, you will save a significant amount of money. Our wholesale currency exchange rates for money transfers are significantly more competitive than bank foreign exchange rates. Being Australasian based, we specialise in knowing what drives AUD/CAD currency conversion rates.
AUD to CAD Overview: Both the Australian and Canadian dollars are regarded are commodity currencies. AUD CAD is a relatively stable currency pair. The CAD fortunes are more closely aligned with those of the US, as it is their largest trading partner and neighbour. The AUD fortunes are aligned with those of Australia and Asian emerging markets. A break down in correlation can happen in periods of dislocated global growth as we have seen following the 2008 global financial crisis. The AUD closer ties to the Asian economies has seen it consolidate at historically elevated levels again the CAD.
|Historical Ranges:||1 year||5 years||10 years|
|AUD/CAD||.9731 – 1.0395||.9134 – 1.0715||.7162 – 1.0779|
Current Official Cash Rates:
Reserve Bank of Australia (RBA): 1.00% Bank of Canada (BoC): 1.75%
The Crude Oil rally over the past few weeks has supported Canadian Dollar (CAD) moves with the currency on fire of late as the price of Crude entered the 80’s this morning up a further 1.7% overnight. The Australian Dollar (AUD), although outperforming its rivals of late, finds itself at the long term support level of 0.9100 Monday. The cross hasn’t traded at this level since May 2020. Australian jobs numbers Thursday is our only data focus this week with an uptick in the unemployment numbers predicted to put the Aussie under more pressure. The cross trades at 0.9170 into Tuesday as risk sentiment improves.
Current Level: 0.9169
Last Weeks Range: 0.9105-0.9198
Australian Bank holiday Monday made for a slow start to the week with the Australian Dollar (AUD) easing slightly lower to 0.9160 against the Canadian Dollar (CAD). Crude Oil is up nearly 3.0% on the day as we head into Tuesday sessions which weirdly hasn’t supported the Loonie yet. Earlier Canadian GDP for August came in at -0.1% compared to -0.2% as negative forecasts were revised driven by the opening up of restaurants and hotels. We suspect the Aussie may be susceptible to a dovish review when the RBA discusses their monetary policy later today which could be the reason we are seeing small downside movement in the cross. Heavy long term support is seen at the 0.9100 area, a drop below this pivotal zone and we are into May 2020 levels.
Current Level: 0.9174
Last Weeks Range: 0.9142-0.9213
The Canadian Dollar (CAD) has been very well supported over the week across the board as Crude Oil prices extended higher to 75.00 per barrel. Against the Australian Dollar (AUD) price dipped to 0.9150 this morning. Equities have not helped turning lower on the day as the US Dollar rose in demand. Australian Retail Sales figures for August were down -1.7% but not as much as the predicted -2.5% we were expecting. Clearly spending over the month reflected the impacts of covid lockdowns in NSW and Victoria. Canadian GDP for the July month publishes tonight with predictions of a slowing in growth of -0.2%. Huge support at 0.9100 looms with expectations this will be broken next week as the descending trendline continues.
The current interbank midrate is: AUDCAD 0.9156
The interbank range this week has been: AUDCAD 0.9142- 0.9213
Recovering Iron Ore prices have given the Australian Dollar (AUD) hope heading into the week against the Canadian Dollar (CAD) with price pushing up to 0.9215 this morning from 0.9170 Friday. Iron Ore recovered from the 102.80 level to trade back around the 109.00 zone earlier today casting aside the Crude Oil rally supporting the Loonie. The CAD is higher against all other major currencies except the AUD indicating the significance of improving ore prices to the Australian economy. We could see the pair return to 0.9300 levels this week if risk sentiment improves.
Current Level: 0.9199
Last Weeks Range: 0.9166-0.9315
The Australian Dollar (AUD) fell from 0.9300 style levels against the Canadian Dollar (CAD) unable to sustain this level drifting to 0.9200 Thursday. Crude Oil came roaring back, up 2.0% overnight to trade around the 73.30 level assisting the Loonie to 0.9240. The certainty of Trudeau winning his third term as Liberal Party Prime Minister kept aside any large shifts with the re-elected PM narrowly failing to win a majority of votes as he wanted. The conservatives won 156 votes, 14 short of the 170 needed to get a majority in the House of Commons. Topside bias looks limited past 0.9270.
The current interbank midrate is: AUDCAD 0.9245
The interbank range this week has been: AUDCAD 0.9200- 0.9314
The Australian Dollar (AUD) launched higher to 0.9320 this morning against the Canadian Dollar (CAD). Crude Oil prices dropped overnight by 1.70% to 70.70 a barrel ahead of the much anticipated policy meeting this week taking the Loonie with it. Crude is down for the second consecutive day as markets anxiously await news of whether the Fed will announce their asset purchasing tapering. We don’t often see the AUD accelerate at such a rate in a “risk off” market, but these aren’t normal times. Canadian people were at the polling booths overnight voting for a new Prime Minister, recent polling has Trudeau and his main contender running neck and neck. If Trudeau loses this will lead to policy uncertainty and a weakened CAD.
Current Level: 0.9296
Last Weeks Range: 0.9230-0.9321
All moves north made by the Australian Dollar (AUD) over the previous fortnight were countered by the Canadian Dollar (CAD) with the pair trading back at 0.9230 Friday. Australian Jobs data was mixed with the unemployment rate dropping to 4.5% from 4.6% surprising markets, the news should have spiked the AUD but a downbeat jobs report revealing a massive 146k contraction in employment with the participation rate likely to blame halting any upside moves. Earlier Canadian CPI which was forecast at 0.1% released at 0.2% rising 4.1% y/y the highest level since 2003. This comes after the Bank of Canada signalled lifting prices were transitory with pandemic related supply bottlenecks. Setbacks in the Aussie may continue for a while.
The current interbank midrate is: AUDCAD 0.9247
The interbank range this week has been: AUDCAD 0.9227- 0.9346
Recent movement in the Canadian Dollar (CAD), Australian Dollar (AUD) cross has been restricted to a range between 0.9300 and 0.9340 into Tuesday. However the Aussie looks to advance lower and continue its slip from last week’s high at 0.9375 the seven week high. Of note, as the Crude Oil price climbs above 70.00 per barrel as supplies are severely restricted by hurricane Ida, this will test lower level support in the pair. Australian unemployment for August due Thursday is expected to show a rise to 5.0% from 4.6%
Current Level: 0.9313
Last Weeks Range: 0.9303-0.9376
The Australian Dollar (AUD) continued gains this week over the Canadian Dollar (CAD) reaching 0.9370 Thursday extending its 7 week stretch. The Bank of Canada (BoC) left rates unchanged overnight as well as monetary policy failing to enhance a hawkish tone. Macklem’s speech was roughly consistent with expectations that the BoC will hold off raising rates and tightening policy until later next year. Setbacks in the Loonie post release were mitigated by a surge in Ivey PMI’s taking the CAD back to 0.9220 this morning. Earlier the RBA maintained its cash rate target at 0.10% and stuck with its original plan to start pulling back their bond buying from 5B per week to 4B until at least February 2022. This comes in the face of the economy losing considerable momentum as the country struggles with the delta outbreak. Unemployment is expected to rise over the coming months as Lowe reaffirmed they would not be hiking interest rates until at least 2024.
The current interbank midrate is: AUDCAD 0.9335
The interbank range this week has been: AUDCAD 0.9296- 0.9376
Prices in the Canadian Dollar (CAD), Australian Dollar (AUD) climbed to 0.9345, a new 7 week high, before easing slightly into the close at 0.9325. Big Dollar weakness after a poor read in the US NFP result supported the Aussie. Iron ore and coal prices also helped as well as Aussie Trade Surplus numbers coming in at a record 12.1B in July with exports up 5%. This week we get a double whammy of central bank excitement with both the Bank of Canada and Bank of Australia announcing cash rate and policy statements. The question on the minds of analysts is whether the RBA will pull back their bond buying program from 5B per week to 4B amid a wave of covid infections and a downgraded third quarter GDP. We predict a hawkish tilt from the RBC as tapering is discussed. We predict a pullback in the pair this week possibly retesting 0.9230
Current Level: 0.9316
Last Weeks Range: 0.9211-0.9347
Prices in the Australian Dollar (AUD), Canadian Dollar (CAD) cross advanced to 0.9335 in overnight trading, a fresh mid-July high before easing back to 0.9285. Australia’s economy leaped back from the covid recession rising 0.7% for the June quarter surprising markets. We all know this doesn’t reflect the full picture of the economy as it’s plagued by ongoing covid led lockdowns in Sydney and Melbourne which in turn should reflect a much worsening economic result for the third quarter. Also of note Canadian GDP for the month of June released at 0.7% or -1.1% contraction on an annual basis. Iron ore continued its rebound reaching 156.50, meanwhile Crude Oil is up over 2.2% in overnight trading and assisted to take price lower to 0.9280 Friday.
The current interbank midrate is: AUDCAD 0.9289
The interbank range this week has been: AUDCAD 0.9181- 0.9334
The Australian Dollar (AUD) climbed back to a two week high of 0.9230 against the Canadian Dollar (CAD) to close out the week. Broad based selling of the US Dollar supported the AUD as risk markets and equities all pushed higher. Iron Ore jumped 5% late in the week also helping to rebound the Aussie. Monday saw price pullback off highs easing to 0.9180 in early Tuesday. Australian second quarter GDP releases tomorrow with some analysts predicting a contraction of -2.0%. Given the coronavirus pandemic in Australia will likely remain bleak for a while and forecasts of a decent contraction in third quarter GDP we suspect topside flows in the cross could be limited in the medium term.
Current Level: 0.9196
Last Weeks Range: 0.9123-0.9231
After a short stint to the May 2020 low of 0.9110 early in the week for the Australian Dollar (AUD) versus the Canadian Dollar (CAD), improved risk sentiment took prices back towards 0.9190 Friday with equity indices posting gains as the global outlook improved. Fed members Esher, Bullard and Kaplan all weighed in on the taper process ahead of Powell speaking at the Jackson Hole event today saying, it’s time to start sooner rather than later. Australian Retail Sales for July prints today and should reflect poor consumer spending hindered by lockdowns.
The current interbank midrate is: AUDCAD 0.9186
The interbank range this week has been: AUDCAD 0.9110- 0.9188
The Australian Dollar (AUD) extended its decline Monday to 0.9120 against the Canadian Dollar (CAD) meeting last week’s low. Here marks the long term low not traded since the 24th of May 2020. Although equity prices regained support in the US the commodity-based currency is still under enormous pressures. When we look at the ongoing crash in the iron ore price we can see why. It has receded from 214.00 per barrel on the 24th of July to just 139.00 today. Not a lot on the calendar this week, just Aussie Retail Sales for July. Expect more downward pressures in the cross.
Current Level: 0.9118
Last Weeks Range: 0.9113-0.9206
A fresh 2021 low of 0.9120 was forged this week in the Australian Dollar (AUD), Canadian Dollar (CAD) cross, extending recent declines as markets were massively risk averse. Equity prices deteriorated dragging on the Aussie as well as iron ore values with price at 157.50 per ton. Australian Jobs data printed ok with the unemployment rate down to 4.6% from 4.9% but this was masked by fewer people actively looking for work due to restrictions. Wage growth over the coming weeks is predicted to be poor, affecting third quarter GDP. With no data of note on the calendar next week we suspect geopolitical influence and risk sentiment may take the AUD lower.
The current interbank midrate is: AUDCAD 0.9163
The interbank range this week has been: AUDCAD 0.9118- 0.9228
Recent drops to Crude Oil prices have undermined the Canadian Dollar (CAD). The Australian Dollar was bid Monday to 0.9230 on the news that demand outlook is worsening. With recent US consumer confidence and poor China economic data adding to recent declines. This week’s economic docket has Canadian CPI m/m and Australian employment data, with geopolitical issues hampering mood topside moves could be limited this week.
Current Level: 0.9195
Last Weeks Range: 0.9176-0.9233
The loonie (CAD) has been under pressure across the board this week after recent setbacks in data publishing and Crude Oil coming off its highs. However, against the Australian Dollar (AUD) it has outperformed with price wallowing around 0.9225 for most of the week before dropping to 0.9175 into Friday. NAB Business Confidence and Westpac Consumer Sentiment missed their marks dragging on the Aussie. Australian Business outlook looks gloomy with the Sydney coronavirus outbreak forcing lockdowns and denting business confidence. Looking ahead we have Canadian CPI m/m releasing and Australian employment figures next week. A retest of 0.9150 looks on the cards in the near term.
The current interbank midrate is: AUDCAD 0.9191
The interbank range this week has been: AUDCAD 0.9174- 0.9243
The Australian Dollar (AUD) reached 0.9310 last week the 10 days high against the Canadian Dollar (CAD) post discouraging Canadian jobs data publishing, giving back gains to 0.9220 into the close. Monday’s pull back continued with the cross down at 0.9210 despite Crude Oil coming off over 2.0% during overnight trading. With a dovish RBA last week and little on the calendar this week to boost the AUD further- declines are forecast.
Current Level: 0.9208
Last Weeks Range: 0.9209-0.9310
The Australian Dollar (AUD) was boosted Monday from a Chinese report playing down the significance of cancelling planned visits to farm states in the US with China’s Ministry of Commerce saying last week’s trade chats were constructive. Trading around the 0.8985 area this week’s action will be influenced by offshore headlines with only Governor Orr speaking tonight on the calendar. Crude oil prices continue to support the Canadian Dollar (CAD)
Current Level: 0.892
Last Weeks Range: 0.8965-0.9103
Early in the week the Australian Dollar (AUD), Canadian Dollar (CAD) pair recovered to 0.9125 after dipping to 0.9075 based on the oil price spike, but Tuesday the Aussie was soon under pressure. Canadian CPI m/m printed at -0.1% less than the -0.2% markets were expecting. Year on year CPI came in at 1.9% to August down from the 2.0% in July. Australian Jobs data fall short of market expectations when the unemployment rate rose to 5.3% from 5.2% although employment numbers increased by 22,000 from 15,000. Trading Friday price is holding up around the 0.9000 level but we see a retest of the low at 0.8910 on the horizon.
The current interbank midrate is: AUDCAD 0.9001
The interbank range this week has been: AUDCAD 0.8990- 0.9125
With the Crude Oil price jumping over 20% to 62.50 per barrel after a Saudi Arabia oil field was bombed over the weekend price in the Australian Dollar (AUD), Canadian Dollar (CAD) fell to 0.9070 from 0.9140 on Monday’s open. It has since recovered slightly to 0.9100 as we await further news as to how oil reserves will impact price over the next few days with overall market supply. The RBA publish their policy minutes from the last meeting on 3 Sep today along with House Price Index results for the second quarter ending June with expectations of a drop of 1% in the house price medium. Attention will then turn to Canadian CPI m/m and later in the week Aussie employment data with unemployment expected to remain at 5.2%. Although the last two weeks have been profitable for the AUD trading off the low off 0.8915 we still think downside risks remain.
Last Weeks Range: 0.9065-0.9143
A quiet week of any meaningful economic data in the Canadian Dollar (CAD), Australian Dollar (AUD) cross has seen the Aussie extend last week’s gains to 0.9080 in general risk on conditions. NAB Business confidence showed a slight deterioration in August with Westpac consumer sentiment also printing down on expectations with pressures continuing on family finances and concerns around near term economic outlook. Price at 0.9070 sits at a six-week high with strong resistance on the chart at 0.9100. Next week’s calendar should give us more volatility with Australian employment figures and Canadian CPI m/m publishing.
The current interbank midrate is: AUDCAD 0.9074
The interbank range this week has been: AUDCAD 0.9004- 0.9089
The Australian Dollar (AUD) has pushed higher Monday continuing last week’s form off the low of 0.8925 back over 0.9000 psychological level to 0.9045 Tuesday. A healthy risk appetite continues with US equities extending their run off the back of last week’s with China agreeing to sit back at the table with US officials to nut out trade negotiations. Canadian employment boosted the CAD momentarily Friday after figures showed 81,000 people were added to the workforce and the unemployment rate remained stable at 5.7%. With a lack of any real data publishing this week price may drift around current levels, perhaps track a touch higher is risk allows.
Last Weeks Range: 0.8924-0.9056
The Australian Dollar (AUD) pushed higher to 0.9050 midweek as buoyant economic data surprised taking price to a two week high against the Canadian Dollar (CAD). The Bank of Canada left rates unchanged Thursday at 1.75 the seventh time in a row and surprisingly indicated no further cuts were on the radar. The Loonie recaptured earlier losses trading back under 0.9000 a pivotal level to 0.8985. Aussie Trade Balance followed printing higher than predicted taking the cross back above 0.9000 into Friday. Next week will be quiet on the data front, we see topside action capped around 0.9050
The current interbank midrate is: AUDCAD 0.9008
The interbank range this week has been: AUDCAD 0.8923- 0.9050
It’s a massive week on the calendar for data in the Canadian Dollar (CAD), Australian Dollar (AUD) pair with a slew of market moving reports to publish. After a week of wild swings, the cross has looked settled so far this week with a Canadian holiday monday making for thin trading conditions. Price waits around 0.8950 level with Aussie Retail Sales, Current Account and the all important RBA cash rate announcement and statement at 4.30 NZT. No change from the 1.0% is forecast today. Thursday’s Bank of Canada rate announcement and statement publish early Friday morning and is also not expected to change from the current 1.75%. Last on the docket is Canadian employment saturday morning. Moves this week will be clearly data dependant its anyone’s guess as to where the cross could close the week- My prediction is somewhere around 0.8900
Current Level: 0.8940
Last Weeks Range: 0.8911-0.8996
A risk on, risk off mood this week was captured in the Australian Dollar (AUD), Canadian Dollar (CAD) pair with volatility high. Price initially looked to push back into the 90’s but was met with poor Australian Construction figures followed by CAPEX results. Construction in Australia has worsened with a contraction over the second quarter. At around 0.8950 Friday we are close to the weekly low and expect to see a break lower if today’s Building Approvals prints down on predictions.
The current interbank midrate is: AUDCAD 0.8924
The interbank range this week has been: AUDCAD 0.8915- 0.9013
The Australian Dollar (AUD) fell to a three week low of 0.8915 on Monday’s open against the Canadian Dollar (CAD) as currencies gaped lower on trade war fears. Equity markets and risk assets then made up losses when reports surfaced that Chinese officials called Trump wanting to restart trade talks. Better than expected Canadian Retail Sales was overshadowed by the initial escalation of trade was tensions. Any momentum towards 0.9020 looks well capped with further declines expected this week on risk appetite. Canadian Current Account and Aussie Building approvals print Friday.
Current Level: 0.8971
Last Weeks Range: 0.8906-0.9046
The Australian Dollar (AUD) looks to have turned a corner against the Canadian Dollar (CAD) as price pushed back over 0.9000 Monday to 0.9015. With recent CAD weakness and last week’s upbeat employment figures the Aussie has enjoyed fresh support coming off the low of 0.8880 a fortnight ago. Today’s monetary policy minutes from the RBA meeting on August 6th holds market attention with CAD Retail Sales later in the week. More AUD/CAD updates.
Current Level: 0.9008
Last Weeks Range: 0.8930-0.9047
The Australian Dollar (AUD) has steadily improved over the week against the Canadian Dollar (CAD) back into the 90’s to 0.9030 after Aussie employment data impressed. Wage price inflation rose to 0.6% from 0.5% for the quarter to June as well as an increase to the number of new people employed which rose from a flat 500 in June to 41,000 in July after an expected 15,000 was predicted. The unemployment rate stayed at 5.2% since rising in March from 5.0%. Crude oil is holding steady around the 54.00 area but dipped 1% overnight putting added strain on the Loonie. Market focus is now with next week’s Canadian CPI m/m and Retails Sales. I’m picking a continuation of the current trend with price reaching 0.9050 before the weekly close.
The current interbank midrate is: AUDCAD 0.9025
The interbank range this week has been: AUDCAD 0.8921- 0.9042
The Australian Dollar (AUD) perked up to 0.9050 late last week against the Canadian Dollar in what turned out to be a weekly high before retracing earlier moves lower. Canadian Unemployment came in terrible for the second month running as jobs numbers shrank to -24,000 after a rise of 15,000 was expected. Also unemployment rose to 5.7% from 5.5% boosting rhetoric around whether the Bank of Canada should cut rates. Tuesday’s price sees the cross trading just off the historical low seen last week at 0.8940. A retest of 0.8885 looks on the cards if Australian jobs data doesn’t improve this week.
Current Level: 0.8945
Last Weeks Range: 0.8889-0.9050
After reaching a historic low of 0.8890 post RBNZ announcement Wednesday the Australian Dollar (AUD), Canadian Dollar (CAD) bounced sharply higher Friday to 0.9050 a weekly high. Crude Oil continues to put pressure on the CAD although it rose 3% overnight to 53.00. The RBA announced Tuesday they were keeping the benchmark cash rate at 1.0% with the global outlook remaining questionable and inflation expectations low. This had very little impact on the Aussie dollar movement after the release. An easing bias still remains for the RBA with expectations of further cuts expected based on a “if needed” scenario. Key Canadian Unemployment prints to tomorrow morning is not the focus. Anyone sellers of AUDCAD should consider current prices.
The current interbank midrate is: AUDCAD 0.9008
The interbank range this week has been: AUDCAD 0.8889- 0.9050
The Australian Dollar (AUD) continued its fortnight run lower into Tuesday against the Canadian Dollar (CAD) to 0.8920, the lowest price seen in many years. Strong Canadian Trade Balance at 0.1B compared to -0.3B forecast boosted the CAD Friday into the close, despite falling Crude Oil values. Today’s RBA cash rate and statement is the highlight on the calendar this week with markets split as to whether we will see a cut to 0.75% or pause until the November meeting. We expect more downside to continue.
Current Level: 0.8949
Last Weeks Range: 0.8901-0.9095
As we noted in the last commentary the Australian Dollar (AUD) has been unable to hold the support level of 0.9070 falling to a multi year low against the Canadian Dollar (CAD) to 0.8990. Quarterly CPI rose to 0.6% from 0.5% markets were expecting causing a pause to the downside midweek momentum, but with Canadian GDP releasing at 0.2% after 0.1% highlighting a third straight month of increases the Aussie was again under heavy pressure. With price extending below 0.9000 we could see further lower levels reached especially if next week’s RBA on Tuesday is dovish going forward.
The current interbank midrate is: AUDCAD 0.8991
The interbank range this week has been: AUDCAD 0.8976- 0.9067
The Australian Dollar (AUD) continues to not only look very poorly against the Canadian Dollar (CAD) but across the board as it has depreciated a large chunk over the past week. Two weeks prior the Aussie had one of its best weeks of 2019 rallying 150 points to 0.9250 but has since continued its bearish quest to scary low levels today of 0.9080. There is not much cushion between solid support of 0.9070 and dropping further into the abyss and levels not seen for several years. Today’s Aussie Building Approvals and tomorrow’s quarterly CPI should give us more clues as to direction and where we can expect price to be. Also later this week Australian Retail Sales followed by Canadian Trade Balance will be closely watched by markets. With the CAD offering 1.75% and the AUD 1.0% return on cash lower prices in this pair may already be a forgone conclusion especially with talk of the RBA easing further.
Current Level: 0.9086
Last Weeks Range: 0.9076-0.9246
Support for the Australian Dollar (AUD) over the past two weeks ended abruptly Tuesday after price moved sharply lower from the 0.9240 high to 0.9130 against the Canadian Dollar (CAD). Initially continuing last week’s momentum with disappointing Canadian Core Retail Sales -0.3% vs +0.3% devaluing the CAD. But with RBS’s Lowe making comment more cuts could be on the horizon economic data dependant the Aussie lost its mojo sinking a fresh weekly low. Unplanned outages and sanctions on Iran and Venezuela to oil production suggesting a recent decrease of around 8% are the reasons why oil prices have been recently well supported thus boosting the Loonie. Next week’s Canadian monthly GDP and Australian Retail Sales feature.
The current interbank midrate is: AUDCAD 0.9140
The interbank range this week has been: AUDCAD 0.9132- 0.9247
We have seen choppy trading in this pair over the past week, but ultimately it’s the Australain dollar (AUD) which has had the upper hand. Disappointing data from Canada at the end of last week, in the form of Core Retail Sales which printed at -0.3% vs +0.3% expected, pressure the Canadian dollar (CAD) and helped to drive the pair to the week’s high of 0.9241. Currently the market is trading just below there at 0.9231. The economic calendar this week looks very light from both countries with just a speech from RBA Gov Lowe of any note. We favour the AUD continuing to outperform the CAD with a target of 0.9315 over the coming week or two.
Current Level: 0.9231
Last Weeks Range: 0.9142-0.9242
The Australian dollar (AUD) has had a strong week against its Canadian counterpart rallying from a low of 0.9072 to currently trade at 0.9182, just shy of key resistance around 0.9200. A dovish statement from the Bank of Canada after their latest interest rate meeting helped to drive the move, as did yesterday’s release of stronger than forecast Chinese activity data. All eyes now shift to the RBA minutes set for release in the coming hours. On Thursday we then have Australian employment numbers to digest. Resistance around 0.9200 should provide a tough barrier to crack, and any move above there would be a bullish sign.
Current Level: 0.9184
Last Weeks Range: 0.9073-0.9187
The Canadian dollar (CAD) has outperformed the Australian dollar (AUD) over the past week, driving the pair to a low of 0.9110 in the wake of Fridays employment data. That’s the second time the pair has tested the 0.9110 area, after bouncing from there a couple of weeks ago. Whether or not that support level continues to hold will largely depend on what the Bank of Canada say at their regular interest rate meeting this week. They are not expected to cut interest rates at all and they may well upgrade their forecasts for GDP over the coming months. That should support the CAD and potentially see the AUDCAD have another crack at 0.9110 support.
Current Level: 0.9130
Last Weeks Range: 0.9110-0.9204