Forecasts for CAD to AUD
Recent forecasts and currency market updates suggest a mixed outlook for the CAD to AUD exchange rate. The Canadian dollar has been struggling against the US dollar due to market sentiment rather than underlying fundamentals. Housing price declines and negative wealth effects may continue to put pressure on the Canadian dollar in 2023. On the other hand, the Australian dollar has seen downward revisions in forecasts by major banks, mainly due to incorrect assumptions about Chinese demand for iron ore and a softer US dollar. Changes in commodity prices, trade policies, and political developments can significantly impact the AUD's value. Additionally, the AUD tends to fluctuate based on market risk appetite, making it sensitive to growth prospects for the global economy.
In terms of recent price data, the CAD to AUD exchange rate is currently at 14-day lows near 1.1465, slightly above its three-month average of 1.1388. However, it has traded within a relatively stable range of 5.6% from 1.1048 to 1.1662. This indicates a lack of significant movement in the exchange rate over the past few months.
In relation to oil price movements, which can impact the Canadian dollar, the Brent Crude OIL/USD price has been trading at 95.38, which is 11.7% above its three-month average of 85.37. The oil price has also exhibited high volatility, ranging from 72.26 to 96.61. This suggests that oil prices have shown strength in recent months, potentially providing some support to the Canadian dollar.
Taking into account these factors, FX analysts predict that the CAD to AUD exchange rate may continue to face pressure due to the risk-on and risk-off environments in financial markets and the negative sentiment surrounding the Canadian dollar. However, the outlook for the Australian dollar could improve if markets become optimistic about potential rate cuts in the US and the global economy stabilizes. Additionally, any increase in construction and demand for iron ore, especially from China, could positively impact the AUD. The ongoing volatility in oil prices is an important factor to monitor for its potential influence on the Canadian dollar.
