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 provides an in-depth analysis of the CAD/AUD currency pair, examining recent trends, technical indicators, and future forecasts to offer a comprehensive understanding of its performance.

Recent Exchange Rate Trends

As of March 28, 2025, the CAD/AUD exchange rate stood at 1.1109, marking a 0.15% increase from the previous day. Over the preceding month, the pair experienced a high of 1.1173 and a low of 1.0949, with an average rate of 1.1049. This indicates a relatively stable trading range, with minor fluctuations influenced by various economic factors.

Technical Analysis

On March 7, 2025, technical indicators for the CAD/AUD pair suggested a "Strong Sell" signal. The Relative Strength Index (RSI) was at 41.889, indicating a bearish momentum. The Moving Average Convergence Divergence (MACD) stood at 0, further supporting the bearish outlook. Additionally, all moving averages (5, 10, 20, 50, 100, and 200 periods) were signaling a "Sell," reinforcing the negative sentiment at that time.

By March 18, 2025, the technical outlook had shifted to a more neutral stance. The RSI was at 49.293, indicating neither overbought nor oversold conditions. The MACD was at -0.001, suggesting minimal bearish momentum. Moving averages were evenly split between "Buy" and "Sell" signals, reflecting market indecision.

On March 20, 2025, the technical indicators turned bullish, with a "Strong Buy" signal. The RSI increased to 71.752, indicating overbought conditions. The MACD rose to 0.002, suggesting bullish momentum. All moving averages signaled a "Buy," highlighting a positive trend in the market.

Forecasts and Predictions

Short-term forecasts indicate a slight decrease in the CAD/AUD exchange rate. For instance, a prediction from March 19, 2025, anticipated a 0.68% decline over the next month, bringing the rate down to 1.09618. The sentiment at that time was bearish, with a 14-day RSI of 45.11, suggesting a potential downward trend.

Long-term projections, however, suggest a gradual appreciation of the CAD against the AUD. By the end of 2025, the exchange rate is expected to average around 1.1377, with a range between 1.1320 and 1.1433. Looking further ahead, the rate is projected to reach an average of 1.2892 by 2030, indicating a steady upward trajectory over the next decade.

Factors Influencing the Exchange Rate

Several factors contribute to the fluctuations in the CAD/AUD exchange rate:

• Commodity Prices: Both Canada and Australia are major exporters of commodities. Fluctuations in global commodity prices, such as oil for Canada and minerals for Australia, can significantly impact their respective currencies.

• Interest Rates: Differences in interest rates set by the Bank of Canada and the Reserve Bank of Australia influence investor attraction to each currency.

• Economic Indicators: Economic data, including GDP growth, employment rates, and trade balances, affect currency strength. Positive economic indicators in one country can strengthen its currency relative to another.

• Global Economic Conditions: Global events, such as economic crises or geopolitical tensions, can lead to shifts in investor sentiment, affecting currency exchange rates.

Conclusion

The CAD/AUD exchange rate has experienced moderate fluctuations over the past few months, influenced by various economic factors and market sentiments. While short-term forecasts suggest a slight decline, long-term projections indicate a gradual appreciation of the Canadian Dollar against the Australian Dollar. Investors should consider these trends, along with underlying economic indicators and global events, when making decisions related to this currency pair.