The CAD to AUD exchange rate has recently shown a stable performance, currently set at 1.0883, just below its three-month average. This stability reflects a range of 1.8% over the last few months, trading between 1.0834 to 1.1030. A significant factor impacting the Canadian dollar (CAD) is its close correlation with oil prices, given Canada's position as a major oil exporter. Oil prices recently surged to 14-day highs near $63.75, although they remain 1.5% below their three-month average of $64.72, having fluctuated within a volatile 15% range.
Recent forecasts indicate that the CAD has gained strength due to rising oil prices. The Canadian economy benefited from an annualized GDP growth of 2.6% in Q3, which has bolstered investor confidence. However, a potential increase in the jobless rate to 7% in November could pose challenges for the CAD. Analysts remain cautious about how the Bank of Canada's decision to cut interest rates to 2.25% may influence future CAD movements, as lower rates could dampen demand for the currency.
On the other hand, the Australian dollar (AUD) has experienced fluctuations amid mixed economic signals. Following a surprising rise in household spending and strong trade data, the AUD initially strengthened. However, it struggled to maintain gains due to a decline in commodity prices. With Australia experiencing strong GDP growth of 2.1% year-on-year in Q3, investor expectations are growing for a potential rate hike by the Reserve Bank of Australia, which could further support the AUD.
Economists emphasize that the future trajectory of both currencies will be heavily influenced by commodity prices, interest rate decisions from both the Bank of Canada and the Reserve Bank of Australia, and overall global economic sentiment. With trade dynamics, particularly with key partners like the U.S. and China, playing a crucial role, any shifts in economic indicators could lead to substantial fluctuations in the CAD to AUD exchange rate. As the market looks ahead, both currencies remain apart of wider economic trends that warrant close monitoring for individuals and businesses involved in international transactions.
