AUDCAD may rise to 0.91242 due to worsening situation in Canada

AUDCAD was volatile this week, with a slight 0.265% gain from Monday to Thursday. On Friday, prices opened at 0.90698.

The 25% tariffs on US steel and aluminum imports announced by President Donald Trump pressured the two countries. Australia did not receive an exemption from these measures and faced the need to rebuild its steel and aluminum exports. The country's government stated its intention to stimulate domestic demand for the products of these industries. However, the decision poses additional risks to Australian exports, which may put pressure on AUD.

Canada was also hit by trade restrictions. The country decided to abstain from retaliatory measures due to the threat to raise tariffs to 50%. However, the government requested consultation with the US through the WTO. In addition, the Bank of Canada cut interest rates to 2.75% on March 12, reacting to a slowdown in economic growth amid US trade policies. The drop in oil prices puts additional pressure on the CAD.

Australia also has difficulties, although the situation looks less tense. Consumer sentiment improved in March due to lower inflationary pressures and interest rate cuts by the Reserve Bank of Australia (RBA). However, business confidence slipped back into negative territory in February, which signals problems in the business sector.

The next major event will be the release of Canada's month-to-month Consumer Price Index (CPI) data on March 18. It is expected to come in at 0.9%, up from January's 0.1%. On Thursday, March 20, the unemployment rate data is expected in Australia. The rate is expected to remain at January's level of 4.1%.

MACD indicator shows the presence of bullish momentum: The blue MACD line is above the red signal line, indicating a possible continuation of price growth. The MACD histogram also shows positive values, which confirms the current upward trend.

Stochastic oscillator shows neutral market dynamics with a bearish signal. Both lines are in the neutral zone (between 20 and 80 levels), indicating that there are no clear signs of overbought or oversold conditions. The blue line (%K) is equal to the red line (%D), which may usually signal a change of trend to an uptrend.

Current Recommendation:

Buy AUDCAD at the current price. Take profit – 0.91242. Stop loss – 0.90082.