The Canadian Dollar is trading at 1.03 against the Australian Dollar this morning, down -0.09% with a YTD return of -6.11%. The pair’s open rate of 1.0312 is similar to the previous close of 1.0311. CAD/AUD daily range should stay between 1.02 and 1.03, the 52-week range is forecasted to move between 1.02 and 1.23.
CAD has lost momentum against the Australian currency, continuously dropping from the 1.20 support level that was seen in March, which was the highest exchange rate the currencies’ have experienced in over five years. As COVID-19 continues to threaten global economies, CAD/AUD has fluctuated from the 1.03 and 1.07 levels over the last 6 months.
At the end of October, there was a jump to the 1.08 level but was brief as the end of the year has brought less growth for the Canadian Dollar, driving CAD/AUD traders towards bearish trading tendencies.
AUD has been able to sustain growth, trading within a rising wedge pattern, “it is likely that the exchange rate could continue to trade upwards within the predetermined pattern” moving into 2021, which could cause a breakout north to follow according to FXStreet.
Australia has been successful with respect to control over coronavirus numbers which have influenced the recent increases in the country’s currency. The Australian economy currently has the upper hand compared to Canada, with fewer lockdown measures there is more accessibility and ability to stimulate market growth. AUD traders should continue to hold a bearish stance moving into the new year with hopes that their COVID-19 numbers remain low.
By Surina Nath