The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate slipped on Friday despite forecasts for unfavourable Canadian Unemployment Rate and Net Change in Employment figures later in the North American session.
Canadian Unemployment Rate is expected to climb from 6.6% to 6.7% as the economy sheds -5.0K jobs in February.
Since July last year, oil prices have tumbled by around 60% and the Canadian commodity currency has suffered as a result. The Organisation of Petroleum Exporting Countries (OPEC) has held most of the chips in recent months, refusing to cut oil production despite tumbling prices—an attempt, perhaps, to price US shale oil out of the market.
However, is change on the cards? After allowing nine months of oil depreciation to continue, some experts are suggesting that the days of OPEC dominance are coming to an end.
International economic director Benn Steil commented: ‘The last time they were in a parallel situation, with oil prices plummeting in the 1980s, you had all these proclamations that OPEC was dead.’
‘Yet they weren’t, because when the fundamental forces of the business settled at a higher level of oil prices, they started to regain some relevance.’
However, differences between OPEC members have weighed on the organisation and a loss of influence has become evident. The World Bank claims that amid shifting market conditions and developments in technology, OPEC will soon lose a lot of its power.
Industry expert Max Fraad Wolff commented: ‘We’ve seen this forecast before. It is very easy for various parties to forecast outcomes they would sort of like to happen. It is clear that OPEC had suffered a diminution or decreased in its influence.’
‘It is likely to be a case where this influence might not be recoverable in its total. But I don’t think the days are numbered completely.’
Meanwhile, the Australian economy had a quieter end to the week with domestic data thin on the ground. However, Tuesday will see the release of the Reserve Bank of Australia’s meeting minutes, followed by Westpac’s Leading Index on Wednesday.
Canadian data will be scarce in the first half of next week but Friday will heat up with Canadian Consumer Price Index stats. Inflationary levels the world over are being closely monitored at the minute as oil prices drop and central banks become more dovish.
The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate is trading at 0.9764. The Canadian Dollar to Australian Dollar (CAD/AUD) exchange rate is trending in the region of 1.0247.
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