Australian Dollar to Canadian Dollar (AUD/CAD) Exchange Rate Forecast to Strengthen on Oil Prices

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Twenty Australian Dollars (AUD)

The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate appreciated by around 0.47%.

With market sentiment dampened amid falling crude prices, the risk-correlated ‘Aussie’ (AUD) softened versus many of its major peers. The declination was slowed somewhat, however, with gold prices rising thanks to a softer US Dollar. Positive domestic data had minimal impact with commodities fluctuations dominating trader focus.

The Canadian Dollar, meanwhile, softened in response to low oil prices. Positive domestic data wasn’t enough to micrify dampened demand for the commodity-correlated Canadian Dollar. Additional declination is as a result of tracking the US Dollar downtrend.

The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate is currently trending in the region of 0.9801.

Australian Dollar (AUD) Exchange Rate Edges Lower on Market Sentiment

With China’s economic recovery stuttering, and with crude prices cooling, the Australian Dollar softened versus the majority of its most traded currency rivals.

Positive domestic data wasn’t enough to overshadow the lack of trader risk-appetite, although the Reserve Bank of Australia (RBA) will be pleased that the ‘Aussie’ declined on commodities rather than by disappointing data results. February’s New Motor Vehicle Sales increased by 4.1% on the year, bettering the previous growth of 0.2% significantly. On a monthly basis, new vehicle sales showed growth of 2.9% in February after having declined by -1.9% in January.

A softer US Dollar caused gold prices to rise which slowed the ‘Aussie’ declination somewhat. ‘The Dollar had a pretty strong run-up last week, so maybe as you see some people lighten up on that trade, it gives gold a bit of support,’ said Charles Nedoss, a senior market strategist with LaSalle Futures in Chicago.

The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate dropped to a low of 0.9734.

Canadian Dollar (CAD) Exchange Rate Slides on Crude Supply

With crude prices falling below $45 a barrel amid oversupply and a lack of demand, the ‘Loonie’ softened versus the majority of its most traded currency peers. ‘For oil we believe that fundamental adjustment still has some way to go. In the short-term, we expect US inventories will continue to build at a rapid pace and OECD inventories to also start to build over the coming months,’ said Goldman Sachs.

Canadian data printed positively but it wasn’t enough to overshadow tanking oil prices. International Securities Transactions saw a surplus of 5.73 billion in January; surpassing the median market forecast of a -2.00 billion deficit.

Australian Dollar to Canadian Dollar (AUD/CAD) Exchange Rate Forecast to Hold Gains

Given that oil prices are showing no sign of a quick recovery, and with a lack of influential domestic data publications to provoke volatility, the Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate is likely to hold gains. The Roy Morgan Weekly Consumer Confidence Index may cause Australian Dollar movement, but it is unlikely to have a massive impact with commodities prices trending lower.

The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate climbed to a high of 0.9807 today.

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