AUD/CAD price analysis: Australian dollar breaks through 0.9200 vs CAD
Explore the rise of the AUD/CAD to 0.9200, a peak since March 2023. Learn how strong Australian economic conditions and weakening Canadian employment figures are influencing this dynamic movement in the forex market.
AUD/CAD hits 0.9200 for first time since March 2023
In a major swing, the AUD/CAD exchange rate rose above 0.9200, marking its highest point since March 2023. The Australian dollar has rallied strongly from a low of 0.8600 against the Canadian dollar in Fall 2023, driven by a combination of economic factors and investor sentiment. This ascent highlights the Australian dollar's resilience and the shifting dynamics in the forex market during this period.
Australian dollar is getting stronger
Contributing to the Australian dollar's strength, recent economic data from Australia suggests that high interest rates might persist for an extended period. Most notably, Australia's monthly CPI indicator beat expectations, rising to 4%. Higher inflation suggests the Reserve Bank of Australia (RBA) may have to keep monetary policy tight for an extended time. This scenario tends to attract investment into Australian assets, boosting the demand for AUD. Such economic conditions not only strengthen the currency but also influence global trading patterns, making AUD an appealing option for forex traders.
Canadian dollar falls on weak jobs data
Conversely, the Canadian dollar has weakened following disappointing jobs data, with the unemployment rate rising unexpectedly to 6.4% in June, the highest since January 2022. This increase in unemployment could signal underlying economic issues, making CAD less attractive to investors. Such data is crucial for traders who must consider economic health when planning their strategies in the forex market.
AUD/CAD could reach parity for first time since 2018
The AUD/CAD pair is on a trajectory that could see it reach parity, a level it has not seen since 2018. Historically, the Aussie peaked at 1.0700 against the CAD in 2012, and more recently, it has fluctuated mainly between 0.8600 and 0.9400. Current trends and economic factors suggest that reaching parity again is a distinct possibility, reflecting the ongoing strength of the Australian dollar amidst global economic shifts.
How to trade AUD/CAD
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on AUD/CAD
Trading forex requires an account with a forex provider like tastyfx. Many traders also watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Our curated playlists can help you stay up to date on current markets and understanding key terms. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.