The technical layout on the AUD/CAD daily chart looks interesting. Since the beginning of March, we have a chart with higher lows, which until now was quite rare. We also have a broken downward trend line, and the price oscillates around support at 0.9460, where another demand impulse could start. The pair is, therefore, starting to make up for the huge drops from previous years. If we look at the fundamentals, it seems that the currency of Australia expects an agreement between the USA and China, which is supposed to become a fact.
Earlier drops were mainly due to rising oil prices, which supported the Canadian dollar. Nowadays, although this growth is still continuing, there are prospects for it to slow down. We are talking about the latest report on crude oil. It indicates a strong increase in the production of this raw material in the USA. A strong increase is to continue this year and next year, and the USA will record high oil production. Such information may slow down the prices of crude oil and indirectly weaken the currency of Canada. Therefore, it is possible that there is an opportunity to continue the March AUD/CAD increases.
