The outlook for the AUDCAD currency pair from December 18 to December 29 suggests moderate growth, with a possible strengthening of the Australian dollar against the Canadian dollar. This may be caused by changes in commodity prices and general market sentiment.
Since September this year, a weakening of the Australian dollar against the Canadian dollar has been observed, with the exchange rate falling from 0.9348 to 0.9049. At the same time, similar series of ups and downs were observed throughout the whole year, and the bottom was reached at 0.8734 in February.
In the nearest future, the Canadian dollar may strengthen due to stabilization of oil prices. However, it’s unlikely that this will significantly change the situation, since the Canadian economy is still going through recession at the moment. Meanwhile, the Australian dollar is influenced by the release of employment and inflation data in Australia on December 12. The published figures signalled an improvement in the economy and certain success in the ongoing fight against high core inflation, which in turn has a positive impact on the AUD. The situation may change only in 2025 when the Reserve Bank of Australia will hold a new meeting.
As historical data suggests, AUDCAD may stabilize and gradually rise ahead of rate cuts in Australia and oil price fluctuations, important for Canada. As both economies are dependent on commodity exports, changes in gold and oil prices will also be important. A rise in gold prices could support the Australian dollar, while oil price fluctuations could negatively impact the Canadian currency.
In general, the outlook for AUDCAD for the period from December 18 to December 29, 2024, implies a moderate strengthening of the Australian dollar and stabilization of the exchange rate at 0.90529.
The outlook for AUDCAD currency pair suggests buying with the target at 0.91348. Partial profit taking is recommended near 0.90529. The loss limitation level is at 0.89833. Position opening is suggested in the range from 0.89833 to 0.90528.
This content is for informational purposes only and is not intended to be investing advice.
