Listen to the latest market mood for the AUDCAD pair.
Weak AUD, Strong CAD
The Reserve Bank of Australia kept the cash rate and the 3yr bond yield target unchanged at 0.10% as expected. The RBA also said that they will not increase rate until actual inflation is above the 2-3% target range. This means that interest rates may not be increased until 2024. The change to the policy was the extension of bond purchases by $AUD100 billion. This was slightly unexpected and brought AUD weakness.
The Bank of Canada has a more optimistic outlook and the latest rise in oil prices is supporting CAD. This means that AUDCAD rallies higher should find sellers.
Trade Risks: The main risk to this trade is from a risk off tone that weakens oil and sends CAD lower.