Loonie vs Aussie: Trade Tensions Reveal Hidden Weakness in Canadian Dollar
The Canadian dollar has held up against the US currency since Donald Trump took office in January 2025, but its performance against the Australian dollar tells a different story. A rising price graph of the Aussie against the loonie means the Canadian dollar is weakening.
Aussie reached a five-and-a-half-year high of 0.9979 versus the loonie recently, and technical analysis suggests it may be on the cusp of a bigger drop if it can surpass the February 2021 peak of 0.9993. This would put the Aussie on the path to parity with the Canadian dollar.
However, the loonie's weakening trend could stall if the Aussie slips back below its upper Bollinger band at 0.9946 and the May 2026 high of 0.9958. A pullback in the Aussie would send traders looking for support around 0.9897-0.9908, while a break below 0.9750 would be needed to confirm a bullish turn for the Canadian dollar.