The AUDCAD pair has been losing ground in recent weeks, sliding into the support zone between 0.945 and 0.952 after testing a nearly five-year high at 0.976.
Elevated crude prices remain a primary engine behind the pair’s downside. A modest correction from the latest peaks has done little to change the picture, with quotes still hovering above $100 per barrel. This environment typically favors the loonie, given Canada’s status as a major fuel exporter. However, it wasn’t enough to outweigh the Aussie’s policy-gap advantage.
On March 17, 2026, the Reserve Bank of Australia (RBA) increased interest rates by 25 basis points to 4.10% for the second consecutive meeting. The rationale is straightforward: inflation risks. In January, the core Consumer Price Index (CPI) reached new multi-year highs. The regulator sees it as a threat to the country’s economic health and intends to remain hawkish.
Meanwhile, the Bank of Canada (BoC) kept borrowing costs unchanged at 2.25%, even though the national GDP is rather sluggish. Officials haven’t yet ruled out potential hikes, but most economists are skeptical. According to them, the most probable scenario in the second half of 2026 is a move toward monetary easing.
From a technical standpoint, a rebound from the support zone—with a subsequent increase to at least 0.967—is highly likely.
The ultimate recommendation is to buy AUDCAD at the current price, targeting 0.967 within the next month. To mitigate the risk of adverse market movements, place a Stop Loss order in the middle of the support zone, or around 0.948.
This content is for informational purposes only and is not intended to be investing advice.
