Loonie Hits Eight-Year Low Against Aussie Amid USD Strength

The Canadian dollar is feeling the pinch as the US dollar gains strength across the board. This trend is being driven by the Federal Reserve's outlook, which has given the greenback a boost.

Oil prices are also playing a role in the Loonie's decline, with WTI trading softer on hopes for a US/Iran deal. The prospect of renewed Iranian exports and reports of Saudi Arabia's East-West pipeline restoring capacity have contributed to the bearish tone.

The Australian and Canadian dollars have reached parity for the first time in eight years, highlighting the Loonie's relative weakness compared to other major currencies. This is largely due to Canada's softer growth outlook and ongoing trade tensions with the US, which has left the CAD particularly exposed when sentiment towards commodity currencies deteriorates.