Australian Dollar to Canadian Dollar (AUD/CAD) Exchange Rate Forecast to Dive as Canadian Labour Data Impresses

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One Hundred Canadian Dollars (CAD)

The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate declined by around -0.36% during Friday’s European session.

With domestic data producing poor results, and with market sentiment dampened amid low oil prices and geopolitics in Europe, the ‘Aussie’ (AUD) softened versus many of its most traded currency competitors.

Conversely, the Canadian Dollar strengthened against most of its major peers in response to better-than-forecast economic data. Additional appreciation can be attributed to tracking US Dollar gains, with cooling crude prices having minimal impact.

The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate was trending in the region of 0.9648.

Australian Dollar (AUD) Exchange Rate Softens on Market Sentiment

With opinions divided as to whether the new Greek government will be able to balance pleasing both the Greek citizens and creditors, trader risk-appetite has cooled significantly. As a risk-correlated currency, the ‘Aussie’ softened in response to a lack of demand for high-yielding assets.

In addition to dampened market sentiment causing the South pacific asset to soften, domestic data printed poorly. February’s Home Loans failed to meet with the median market forecast growth of 3.0%, having only advanced by 1.2%. Investment Lending declined by -3.4% in February, and February’s Value of Loans only advanced by 0.5% on the month, down from January’s 0.7% increase.

The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate dropped to a low of 0.9630.

Canadian Dollar (CAD) Exchange Rate Gains on Positive Data

In contrast to the Australian Dollar, the ‘Loonie’ (CAD) appreciated in response to domestic data. Of particular positivity was Net Change in Employment which showed 28,700 newly employed; completely eclipsing the median market forecast of zero new positions. Unemployment Rate also bettered estimates, holding at 6.8% in March as opposed to the market consensus of 6.9% unemployment.

March’s Full Time Employment Change did decline by -28,200, but Housing Starts increased by 189,700 in March which was above the market prediction of 175,000.

‘Loonie’ gains can also be attributed to the surging US Dollar as traders forecast the Federal Reserve to hike rates in September.

Australian Dollar to Canadian Dollar (AUD/CAD) Exchange Rate Forecast to Trend Higher

Although oil prices are showing signs of further declination, the Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate is likely to trend higher over the course of the European session. This is due to a stronger US Dollar and dampened market sentiment.

The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate reached a high of 0.9715.

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