While AUDCAD isn’t among the highest-volume pairs in Forex, it’s often in the lesser-traded instruments that sharp traders find unique opportunities.
Commodities heavily influence the Australian and Canadian dollars, as both nations are major exporters. The AUD tends to react more to moves in industrial metals—especially copper—while the CAD is tied to oil price fluctuations.
Beyond commodities, the currencies are driven by their respective economic ties: Canada is closely linked to trends in the U.S., whereas Australia is more sensitive to developments in China. In the absence of fresh geopolitical shocks, traders are focusing on central bank policy divergence and incoming economic data.
On that front, the Bank of Canada paused its rate-cutting cycle at its last meeting after starting in June 2024. Its next decision is due Wednesday, June 4, and markets widely expect another hold, as the BoC remains in wait-and-see mode following the latest U.S. tariff changes.
Meanwhile, the Reserve Bank of Australia kicked off its own cutting cycle in May 2025 with a 25 bps cut and signaled more may follow. This gives the pair a bearish tilt, though sentiment remains cautious until the economic impact of tariffs becomes clearer.
Let’s dive into the charts and examine AUDCAD across higher timeframes, starting from the weekly view to the 4-hour chart.
