The Canadian Dollar is trading at 1.0030 against the Australian Dollar today, up 0.17% with a YTD return of -1.84%. The pair’s open rate sat at 1.0016, up from their previous close at 1.0013. CAD/AUD day range is expected to sit between 1.0011 and 1.0042, their 52-week range is forecasted to move between 1.0010 and 1.23.
After spiking to the 1.20 support level last March, CAD/AUD exchange rate has steadily declined due to Canada’s recent rise in COVID-19 numbers and extended lockdown measures. The pair fell to the 1.04 level last August and fell again to the 1.02 range by December.
Since the beginning of 2021 CAD/AUD has not recovered well, the currency pair barely straddled the 1.02 level moving into February and has continued to drop to 1.00 over the past weeks. The last time CAD/AUD exchange rate was this low was in March of 2018, bulls in favour of AUD should expect continued strength of the Australian currency until the Canadian economy has better control of case numbers and decides to lift restrictions across the country.
After seeing a rapid decline in COVID-19 cases from August to October of last year, Australia has managed to keep the virus under control which has provided the country with more opportunities to simulate the economy domestically. With mass COVID-19 vaccination programs underway, Australia can expect the continued success of their currency moving into Q2.
Canada on the other hand saw a rise in COVID-19 case numbers from September to January, but numbers have been on the decline over the past two months. The Canadian government has been trying to ease travel restrictions as more vaccines become available to the population but with daily case numbers within the 2000-3000 range, the CAD exchange rate will continue to suffer compared to countries such as Australia who has been more successful in controlling the spread of the virus.
By Surina Nath