The AUD/CAD rates are very unstable recent times. The cost of the Australian against the Canadian dollar for the last 3 months changed from 0.95 to 0.99 CAD. However, this month the rates have consolidated in the range of 0.9715-0.9797 CAD. Consolidation was quite obvious as both currencies found themselves in the same conditions, under the same number of negative factors. The reason is that both commodity currencies were under the pressure of the same risk factors, the main of which is the decline in commodity prices, with a likely decline in demand, given the deterioration of trade relations between the US and Canada, as well as China and the US.
This week the Australian dollar, which for a long time could not find growth incentives due to weak economic statistics, received unexpected support and strengthened against most currencies. New data from the labor market showed that unemployment remains at the lowest level in six months, 5.4%, and the number of jobs increased by 50.9 thousand, while economists expected an increase of only 16.5 thousand jobs. At the same time, the number of jobs with full employment is the absolute majority - 41 thousand jobs. The consumer confidence index rose in June by 3.9%, the highest since November 2013. Investors suppose that the improvement in the labor market will allow the RBA to raise the rate, which is now at a record low level. Recently the RBA has stated their readiness to change the monetary policy and revise the rate upward. If it were not for the factors of pressure on the AUD, we would have seen a much more significant strengthening of the AUD amid the improving situation in the economy, according to the latest data. However, disappointing statistics from China, in particular, decreasing in the growth rate of industrial production in June, had a negative impact on the AUD value.
The Canadian dollar for the last nine days was without support in the absence of macroeconomic statistics. The situation will change today with the release of data about the consumer price Index and retail sales in June. Thus, this week the CAD remained solely under the influence of negative factors, especially given the rapid decline in oil prices and the deviation from the price maximum. In addition, investors fear that trade wars will continue to have a negative impact on commodity currencies. The tendency to reduce the volatility for the AUD/CAD will continue in the near future. Despite some consolidation, we can still see a downward trend. In this situation, the most effective would be the deals to SELL. The stochastic oscillator also signals the efficiency of short deals in the near future. The Canadian dollar can be really supported by new statistics today. In addition, the oil prices began to increase again, which also strengthens the CAD's position.
