The current exchange rate for CAD to AUD stands at 1.0843, just 0.8% below its three-month average of 1.0932. This stability reflects a broader trend where the rate has fluctuated within a tight range of 1.0834 to 1.1030 in recent months.
Analysts observe that the Canadian dollar (CAD) has shown resilience, largely driven by rising oil prices, which increased by 1.5% to $59.84 per barrel, positively impacting Canada's energy-dependent economy. However, concerns linger, particularly with anticipated changes in Canada’s jobless rate potentially dragging the CAD down if it rises to 7% from the current 6.9%.
On the Australian dollar (AUD) side, recent trade data has initially bolstered the currency against the backdrop of rising commodity prices. Yet, the AUD faces challenges, especially with a decline in commodity prices affecting its ability to maintain gains. Analysts note that the lag in further domestic data may leave the AUD susceptible to market sentiment and risk dynamics.
The Australian economy is currently benefiting from strong household spending, rising 1.3% in October—the largest increase in nearly two years—further contributing to expectations for potential interest rate hikes by the Reserve Bank of Australia (RBA). Additionally, inflation growth greatly influences market perceptions, with consumer inflation hitting 3.8%, fuelling speculation about shifts in the RBA's monetary policy.
The interplay between the CAD and the AUD remains closely tied to global commodity price trends, especially as oil prices have shown volatility, recently reaching seven-day highs near $63.37, albeit 2.1% below the three-month average. As a commodity currency, CAD's strength against the AUD may be bolstered by further oil price increases, providing a boost to Canada's economic outlook.
Overall, the performance of CAD and AUD depends significantly on ongoing developments in their respective economies, surrounding commodity markets, and overall investor sentiment. As these factors evolve, they will continue to shape the exchange rate landscape for the CAD to AUD pair.
