AUDCAD trend holds firm on upbeat Australian reports

AUDCAD is currently riding a decisive uptrend, powered by a hawkish shift in sentiment surrounding the Reserve Bank of Australia (RBA). The prospect of monetary tightening this year has emboldened buyers, though the pair's rapid ascent invites caution as it approaches levels ripe for a technical pullback. 

The daily chart paints a picture of explosive bullish momentum and high volatility. Specifically, the price has pushed above the upper Bollinger Band (0.94167), indicating a strong, potentially extended trending move. This is a telltale sign that quotes may keep running hot outside the channel for quite some time before a meaningful consolidation or correction takes place.

Concurrently, the Stochastic Oscillator (%K=65, %D=56) sits in a healthy upward trajectory within the neutral zone, showing no immediate exhaustion. This strength is further confirmed by the rising Chaikin Oscillator, which signals buying volume is robust and aligned with price gains. The lack of divergence between quotes and indicators underpins the trend's integrity.

From a fundamental view, the Australian dollar is firing on all cylinders. A blockbuster labor report stunned markets, with unemployment dropping to 4.1% against expectations of 4.3% and a stellar addition of 65,200 jobs—more than double the forecast. This has materially increased the odds of RBA monetary tightening, with investors now seeing a 57–60% probability of a rate hike at the upcoming meeting on February 2–3. Although a move that comes soon is uncertain, the print has unequivocally tilted the policy risk toward hawkishness.

Meanwhile, the Canadian dollar faces its own headwinds, struggling under the weight of lingering trade uncertainty and its sensitivity to a well-supplied global oil market.

All in all, the bullish structure for AUDCAD remains intact. Through January 30, the baseline scenario is for the uptrend to persist, with the pair likely to either extend gains or enter a sideways consolidation between 0.93900 and 0.94740.

Pay attention to the trading plan down below:

Buy AUDCAD in the 0.94000–0.94500 range. Place Take profit at 0.95100. Set Stop loss at 0.93490.

This forecast is valid from January 23 till January 30, 2026.