The Canadian Dollar is trading against the Australian Dollar at 1.01 this morning, up 0.22% with a YTD return of -0.19%. The pair had an open exchange rate of 1.0171, slightly higher compared to the previous close at 1.0167. CAD/AUD should settle between the 1.0154 and 1.0190 range today, the 52-week range is forecasted to move between 1.01 and 1.23.
Last March when the pandemic hit, CAD/AUD reached the highest exchange rate seen in five years at 1.20. Since then the currency pair has dramatically declined, hitting the 1.03 level at the beginning of September then falling even farther to the 1.01 support level as 2021 began.
There is hope that CAD can regain the strength lost since last March as oil prices begin to rally, but until the dust settles about whether or not the Keystone XL pipeline project will be canceled, CAD is anticipated to face bearish trading patterns.
Australia’s economy has been bouncing back as the population has managed to keep COVID-19 numbers under control. This success has backed AUD in a way CAD can only hope for with the release of more vaccinations. With an average of only 3 new cases a day, Australia’s society will be able to spend money at malls and restaurants again which will bolster their currency moving into Q2.
Canada has an average of around 5000 new COVID-19 cases daily. Numbers have been declining since the beginning of the month but control and containment of the new variant will also be vital for the Canadian currency. With continued lockdown measures in the GTA, CAD/AUD may continue to suffer due to a lack of economic stimulation in major Canadian cities.
By Surina Nath