The AUD to CAD exchange rate is currently in a range-bound bias. The performance of the Australian dollar (AUD) is influenced by higher commodity prices and expectations of interest rate hikes by the Reserve Bank of Australia. Meanwhile, the Canadian dollar (CAD) is feeling pressure from static oil prices, which have been volatile and below their three-month average.
Key drivers of the AUD-CAD rate include an interest rate differential where Australia's rates may rise sooner than Canada's, impacting the appeal of the AUD. Moreover, renewed optimism from positive job data in Canada is contributing to the CAD's resilience.
The expected trading range for the AUD to CAD is likely to remain stable around current levels but could experience fluctuations. An upside risk could stem from a stronger-than-anticipated rebound in commodity prices, while a downside risk exists if Canada’s economic data shows weaker performance, leading to renewed strength in the CAD.