The AUD/CAD pair quotations on the daily chart look very technical. Recently there has been a breakdown in the system of the increasing lows. A temporary re-test to this level also ended with a supply reaction. It seems, therefore, that the exchange rate may in the near future be directed towards increasingly lower regions, including support at 0.9310. The reason for the weakness of the Australian currency is the intensification of the trade conflict between the USA and China. The US has already imposed penalty tariffs on Chinese goods, and President Trump accuses the Chinese side of playing the game for time to sign the agreement only with Trump’s successor.
On the other hand, the oil prices, which affect the Canadian dollar, are subject to a significant correction, which seems not to be going to slow down for the time being. If deeper drops occur, it may also translate into the weakening of the Canadian currency. So far, however, the reason for the trade war between the two superpowers has been so damaging to Australia’s currency that oil prices have been pushed into the background.
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