Canadian Dollar has been outperforming other commodity currencies recently and stays generally firm. There is prospect of further rally in the Loonie if BoC opts for a 75bps rate hike this week, instead of 50bps.
Looking at AUD/CAD, it’s staying well in the down trend from 0.9991 (2021 high). Outlook stays bearish as long as 0.8916 minor resistance holds. Break of 0.8744 temporary low will indicate down trend resumption. Next medium term target will be 100% projection of 0.9991 to 0.8906 from 0.9514 at 0.8429.
Nevertheless,firm break of 0.8916 will indicate short term bottoming and bring stronger rebound first.
