The market bias for the AUD to CAD exchange rate is currently bullish. Interest rate differentials are playing a significant role, with the Reserve Bank of Australia expected to raise rates, while the Bank of Canada is maintaining a lower policy rate. This difference could attract more investment into the AUD. Recent data showing a strong jobs report in Canada has enhanced confidence in the CAD, though it is facing some pressure from rising oil prices, which typically support the loonie.
The expected trading range for AUD/CAD over the next few months is likely to remain stable at current highs, reflecting a slight upward trend. A potential upside risk could emerge from further hawkish signals from the RBA, while a downside risk includes fluctuations in oil prices, which can influence the CAD's performance.
With the AUD trading near 0.9322, it is 1.8% above its three-month average, indicating a bullish trend. However, vigilance regarding shifting economic data and geopolitical developments remains crucial.
