AUD/CAD Stalls at Resistance as Volume Casts Doubt on Breakout

The Australian dollar's performance is heavily influenced by the upcoming inflation data release on August 26. The expected figure of 3.2% year-on-year was surpassed, with a result of 3.5%, while the Trimmed Mean increased by 0.5% month-on-month.

This news led to NAB revising its forecast for the Reserve Bank of Australia's (RBA) next policy decision, expecting a 25-basis-point rate hike at the September meeting, taking the rate to 4.6%, with the risk of another increase in November.

The Canadian dollar's key factor was the Bank of Canada's decision on September 2, leaving its policy rate unchanged at 2.25% for the seventh consecutive meeting, highlighting economic uncertainty stemming from US tariffs and Canada's retaliatory trade measures.

The four-hour AUD/CAD chart shows a pronounced uptrend that has lifted the pair towards the current resistance level at 0.9985, forming a converging triangle pattern with narrowing price fluctuations within its formation.