AUDCAD On Track for Second Week of Gains

The AUDCAD currency pair finds itself in an intriguing position, heading towards a second consecutive week of positive gains. Canada’s recent inflation reading of 3.1% in November, which remained flat compared to the prior month, played a role in the Canadian Dollar’s depreciation against the Australian Dollar. Meanwhile, the Reserve Bank of Australia’s (RBA) decision to maintain the interest rate target at 4.35% underscored their cautious yet optimistic stance. 

The RBA’s meeting minutes echoed a balanced strategy, emphasizing a watchful eye on inflation management while also hinting at potential rate hikes in the future. This delicate approach signalled their commitment to maintaining stability while being responsive to economic shifts. The AUD’s enduring strength, propelled by robust employment data and escalating incomes, showcases a resilient economic landscape. 


The AUDCAD currency pair has showcased a compelling uptrend, navigating above the 100-day moving average, illustrating a bullish trajectory. The recent upward surge initiated from a sturdy support level at 0.87547, propelling the pair towards a significant resistance at the 0.90561 level, established back in July. 

However, as this ascent encountered resistance, a downturn followed, prompting a retracement. The retracement found substantial support at the 61.80% Fibonacci Retracement Golden Ratio, marking a crucial turning point. The pair reversed its course from this pivotal juncture, suggesting a resilient stance despite the temporary setback. 

The 0.90561 resistance level currently stands as a pivotal level for the pair, should the prevailing bullish momentum persist. This level signifies a critical point that could validate further upside movement, potentially extending the pair’s climb. Conversely, should a reversal occur, the Golden Ratio will likely serve as a potential barrier against downside momentum.  


The AUDCAD is poised for a second positive week, propelled by Canada’s flat inflation and the RBA’s cautious optimism. The technical analysis underscores a resilient uptrend, with a critical resistance at 0.90561. If upside momentum persists, this level could serve as a point of interest. 

Sources: Reserve Bank of Australia, Statistics Canada, Reuters, TradingView 

Disclaimer: Trive South Africa (Pty) Ltd, Registration number 2005/011130/07, and an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 2002 (FSP No. 27231). Any analysis/data/opinion contained herein are for informational purposes only and should not be considered advice or a recommendation to invest in any security. The content herein was created using proprietary strategies based on parameters that may include price, time, economic events, liquidity, risk, and macro and cyclical analysis. Securities involve a degree of risk and are volatile instruments. Market and economic conditions are subject to sudden change, which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. When trading or investing in securities or alternative products, the value of the product can increase or decrease meaning your investment can increase or decrease in value. Past performance is not an indication of future performance. Trive South Africa (Pty) Ltd, and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered from using or relying on the information contained herein. Please consider the risks involved before you trade or invest.