AUD/CAD Is Nearing A Two-Month High Above 90 Cents


The AUD rose higher overnight after the USD slumped in the wake of the Federal Reserve meeting minutes from earlier this month.

The record showed some board members willingness to step back from the jumbo 75 basis point (bp) hikes that have been seen at four consecutive meetings, including the last one.

This message has been telegraphed by several Fed speakers since that Federal Open Market Committee (FOMC) meeting. The market priced a 50 bp hike at the December gathering before and after this month’s meeting. It continues to do so now.

The market seems to have understood the meeting record as somewhat dovish despite very little new information emanating from them.

Nonetheless, equities went north while Treasury yields sailed south along with the US Dollar. Metal commodities generally got a boost, and this has given the Aussie Dollar an extra tailwind.

At the same time, crude oil has taken a hit and the Canadian Dollar is noticeably lower. The weakness in the Loonie was compounded by comments from Bank of Canada Governor Tiff Macklem.

This remark seemed to gain most attention: “The tightening phase will come to an end, and we are getting closer, but we are not there yet.”

That has been interpreted by the market as less hawkish than previously. As a result, AUD/CAD is approaching a two-month high above 90 cents.

Holiday conditions lie ahead today with Thanksgiving in the US and markets could be somewhat illiquid, potentially providing skittish conditions.

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us


Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.