Exchange Rate Calculator

The exchange rate between the Canadian Dollar (CAD) and the Australian Dollar (AUD) has exhibited notable fluctuations over the past few months. This report delves into the recent trends, underlying factors influencing these movements, and provides insights into potential future developments.

Recent Exchange Rate Trends

As of March 14, 2025, the CAD/AUD exchange rate stood at 1.098, marking a 0.79% decrease from the previous day's rate of 1.107 and a 2.14% decline compared to the same date in the previous year. (ycharts.com) Over the past three months, the exchange rate has remained relatively stable, fluctuating within a narrow range of 2.7% from a low of 1.0982 to a high of 1.1280. (bestexchangerates.com)

Factors Influencing the CAD/AUD Exchange Rate

Several key factors have contributed to the recent movements in the CAD/AUD exchange rate:

Commodity Prices: Both Canada and Australia are major exporters of commodities, with Canada heavily reliant on crude oil and Australia on minerals like iron ore and gold. The Canadian dollar has experienced modest gains recently, buoyed by rising crude oil prices. Conversely, the Australian dollar has been supported by increasing prices for its key exports. However, any downturn in global demand for these commodities can adversely affect their respective currencies. (bestexchangerates.com)

Monetary Policies: The monetary policies of the Bank of Canada (BoC) and the Reserve Bank of Australia (RBA) play a significant role in currency valuation. Divergences in interest rate decisions and economic outlooks between the two central banks can lead to shifts in the exchange rate. (vstar.com)

Global Economic Conditions: The economic performance of major trading partners, particularly China, significantly impacts both currencies. Australia's economy is closely tied to China's demand for its commodities, while Canada's economy is influenced by U.S. economic conditions. Any economic slowdown in these countries can lead to decreased demand for exports, affecting the CAD and AUD. (vstar.com)

Forecasts and Future Outlook

Looking ahead, various forecasts provide insights into the potential trajectory of the CAD/AUD exchange rate:

• Short-Term Forecasts: Projections for the coming months suggest a slight appreciation of the CAD against the AUD. For instance, forecasts indicate an average rate of 1.1066 in April 2025, with values expected to range between 1.1011 and 1.1122. (midforex.com)

• Long-Term Forecasts: By the end of 2025, the exchange rate is projected to average around 1.1112, with values fluctuating between 1.1090 and 1.1134. In 2026, the average rate is forecasted at 1.1200, ranging between 1.1167 and 1.1233. (midforex.com)

Conclusion

The CAD/AUD exchange rate is influenced by a complex interplay of factors, including commodity prices, monetary policies, and global economic conditions. While recent trends indicate relative stability, ongoing developments in these areas will continue to shape the exchange rate dynamics. Stakeholders should remain vigilant, monitoring these factors to make informed decisions in the currency market.