Australian Dollar to Canadian Dollar (AUD/CAD) Exchange Rate Forecast to Trend within Tight Range

  • Posted on

Canadian Dollars (CAD)

The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate was trending within a limited range on Monday.

With the potential for a Greek exit from the Eurozone mounting, market sentiment dampened considerably.

Fears that the Grexit will have far-reaching ramifications have seen increased demand for safe-haven assets. The ‘Aussie’ (AUD) softened versus most of its major peers thanks to its risk-correlated qualities.

Similarly, the ‘Loonie’ (CAD) softened versus the majority of its most traded currency rivals as a result of waning risk appetite. Better-than-expected data, however, has caused the decline to slow somewhat.

The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate is currently trending in the region of 0.9737.

Australian Dollar (AUD) Exchange Rate Softens on Risk Aversion

As explained above, the current crisis bubbling with regards to a potential Grexit has seriously impacted on market sentiment. As a high-yielding asset, the ‘Aussie’ struggles when geopolitical tensions dominate news.

‘It feels like investors still don’t have a lot of conviction about the market and are coming into trades for a quick flip,’ said a senior banker.

There is the possibility for ‘Aussie’ volatility later on Monday evening with the publication of the weekly consumer confidence data.

The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate dropped to a low of 0.9692 today.

Canadian Dollar (CAD) Exchange Rate Ticks Lower as Oil Prices Dip

In addition to damp risk sentiment causing a ‘Loonie’ downtrend, dipping oil prices also added downwards pressure on the Canadian Dollar. ‘The crash in oil prices happened fast and furiously, and now we’re getting those series of layoffs, and rig counts are dropping,’ Economist Liz Ann Sonders says. ‘And now people are concerned: Is this going to carry further into the economy? How much of this is a function of weak global growth?’

However, better-than-expected Canadian Data has prevented a larger ‘Loonie’ declination. Housing Starts was forecast to drop a little from 179, 600 to 178, 500, but the actual result reached 187, 300. ‘The expected slowing in housing starts in energy dependent regions in January failed to materialize, indicating that at this stage, the commodity price plunge is not yet negatively feeding through to confidence channels and into homebuilding activity,’ wrote Royal Bank of Canada economist Laura Cooper.

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

Given that geopolitical developments are dictating trade, and with more Australian data due for publication on Monday evening, the Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate is likely to fluctuate.

The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate reached a high today of 0.9777.

« Previous Story

Australian Dollar to Canadian Dollar (AUD/CAD) Exchange Rate Forecast: Canadian GDP out on Friday, RBA Rate Cuts Reconsidered

Next Story »

Australian Dollar to Canadian Dollar (AUD/CAD) Exchange Rate Forecast to Soften on Canadian Inflation


Disclaimer: Currency-Converter.com.au and its data provider, TorFX, make no claims regarding the validity or exactness of the information provided in on this site and will not be held liable for any use, interpretation, or other implementation of the information provided. Currency-converter.com.au make no warranties, express or implied, as to results to be obtained from use of such information, and make no express or implied warranties of condition, quality, performance, merchantability or fitness for a particular purpose or use. Currency-converter.com.au shall not have any liability for the accuracy of the information contained in the services provided or ommissions there in which are made available on a free, as-is basis. None of the aforementioned parties shall be liable for any third party claims or losses of any nature, including, but not limited to, lost profits, punitive, consequential, special, incidental, indirect or similar damages even if advised of the possibility of such damages. Rates offered are interbank rates and may not be the same as offered by your financial institution, and do not include commissions. Rates shown on this site will vary from those provided by TorFX or other providers linked to from this site.