AUD/CAD Bulls Seize Buying Opportunity at 0.9920
The AUD/CAD exchange rate has seen a significant sell-off recently, but experts remain bullish on this pair. In fact, some analysts are advising traders to buy near the 0.9920 level with a target of 1.01.
This advice is based on the pair's longer-term view, which suggests that it is still trying to break out to the upside. However, recent events have had an impact on the market, particularly the surge in oil prices following the incident in the Strait of Hormuz.
The Canadian dollar is closely tied to crude oil, and the sudden increase has led to a significant shift in the pair's dynamics. Despite this, experts believe that the interest rate differential between Australia and Canada remains wide enough to drive a truck through, making it a good reason to own this pair.
Australia's central bank is seen as hawkish compared to Canada's more neutral stance, which adds to the pair's potential for growth. Additionally, Canada's major trade issue with the United States could further weaken the Canadian dollar in the long run.