The AUD to CAD exchange rate currently shows a bullish bias, trading at 0.9287, reflecting optimism around Australia's economic conditions.
Key drivers include:
- The Reserve Bank of Australia is expected to raise interest rates in early 2026, enhancing the AUD appeal against the CAD.
- Canada's recent jobs report indicates a strong labor market, driving confidence in the CAD.
- Oil prices, crucial for the CAD, are presently 2.9% below their three-month average, which may affect the Canadian currency as lower prices could weaken it.
The near-term trading range for AUD/CAD is likely to remain stable, marked by previous fluctuations between 0.9069 and 0.9312 over recent months.
An upside risk for the AUD could be further unexpected interest rate hikes by the RBA, while a downside risk may arise from a significant rebound in oil prices, strengthening the CAD's position.