AUD/CAD Triangle Breakout Looms as Australian Dollar Gains Ground

The AUD/CAD currency pair is at a critical juncture as it approaches the upper boundary of a multi-month triangle near 0.9920-0.9940.

This consolidation has been ongoing since June, with the pair compressing between falling resistance around 0.9940 and rising support from roughly 0.9750.

A daily close above 0.9940 would be a cleaner bullish confirmation, breaking the sequence of lower highs within the consolidation and potentially reopening the path towards previous highs around 0.9950, followed by the psychological 1.0000 area.

The Reserve Bank of Australia's decision to maintain its cash rate at 4.35%, despite cooling labour market, provides support for the Australian dollar. In contrast, Canada faces trade uncertainty and growth risks due to escalating US-Canada trade tensions.