The AUDCAD pair is currently trading between 0.97500 and 0.98500. Market participants are catching their breath in anticipation of the upcoming Australian and Canadian central bank meetings. Future monetary paths are the main course on each regulator’s agenda.
According to analysts’ forecasts, on April 29, the Bank of Canada (BoC) is widely expected to keep borrowing costs unchanged at 2.25%. On May 5, its Australian counterpart, by contrast, is predicted to raise interest rates by another 25 basis points, bringing them to 4.35%.
The policy divergence works in the Aussie’s favor. The widening gap between the two central banks’ borrowing costs provides fundamental support to the Australian currency and pushes the AUDCAD pair higher.
The technical setup also points to an elevated probability of an upward movement. A recent rebound from the support level, coupled with bullish signals from momentum indicators, all tilt the scales in favor of this scenario. The next upside target for the pair stands at the 0.98500 resistance.
The ultimate recommendation is to buy AUDCAD at the current price, aiming for 0.98500 within a couple of weeks. To mitigate the risk of adverse market movements, place a Stop Loss order slightly below support, around 0.97500.
This content is for informational purposes only and is not intended to be investing advice.
