The AUDCAD currency pair will consolidate between December 25 and December 30, 2024.
The Australian Dollar (AUD) may get support from the Reserve Bank of Australia's (RBA) tight monetary policy aimed at reducing inflation, which still remains above the 2-3% target, and the expected rise in commodity prices, the release of which is scheduled for January 2, 2025. This creates potential for AUD strength. However, weak Australian economic growth in the third quarter and uncertainty in consumer spending pose risks for AUD.
The Canadian Dollar (CAD) is under pressure due to a key rate cut by the Bank of Canada and fluctuations in oil prices. Decline in the commodity price index in November, caused mainly by a fall in energy prices, also puts pressure on the CAD. Meanwhile, some support for the CAD comes from higher prices for ore metals and agricultural products, as well as improved business confidence, although subdued hiring plans indicate continued uncertainty about the outlook. CFIB index data for December, which will be released on December 30, may affect the dynamics of CAD.
In the short term, AUD may show relative strength due to expectations of higher commodity prices and tough RBA policy, while CAD will remain vulnerable to oil price fluctuations and general weakness caused by monetary easing.
The RSI and MACD indicators on the daily chart of AUDCAD show the predominance of bearish sentiment, but the RSI indicates a decline in momentum and a shift to oversold conditions, which could lead to an upward price correction or consolidation. In the short term, AUDCAD is likely to remain in the range of 0.89357–0.90792.
The main recommendation for now is to buy AUDCAD in the range of 0.89357–0.90792. Take profit – 0,91348. Stop loss – 0,892.
This content is for informational purposes only and is not intended to be investing advice.
