AUDCAD Analysis

Introduction

The AUD/CAD represents the relationship between two commodity-driven economies, Australia and Canada. This pair is heavily influenced by global commodity prices, especially energy (oil) and metals. Both Australia and Canada are major exporters of natural resources, with Australia focusing on metals and minerals and Canada being an oil exporter. Movements in the price of crude oil tend to have a significant impact on the CAD, while Australian export prices (iron ore, coal) affect the AUD. The monetary policies of the Reserve Bank of Australia (RBA) and the Bank of Canada (BoC) also drive the pair, particularly interest rate decisions and inflation data.

Fundamentals and Interest Rates

The Reserve Bank of Australia policy is Dovish with the (RBA) current Interest rate 3.6%. Latest change was Aug 12, 2025 (-25bp)%.
On that side the Bank of Canada policy is Dovish and (BOC) has set its interest rate to 2.25% by latest change, Oct 29, 2025 (-25bp).
(RBA) Higher interest rates generally lead to higher returns on investments denominated in AUD. This tends to attract foreign capital into AUD assets.

Based on the economic and macro fundamental data, The Fundamental Bias of AUD is Weak Bullish and for the CAD is Weak Bearish.
Ziwox considering Weak Bullish bias for this asset and we anticipate long-term price increases.
Our Ziwox A, mid-term Fundamental Score for AUD is 7. and Fundamental Score for CAD is 7.

Market Overview & Performance

In the current trading session, "Sydney & Tokyo", Market risk sentiment is Strong Risk-OFF. The Gold and United States Dollar recorded the strongest performance, while the New Zealand Dollar and Australian dollar are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a 0.19% increase against us dollar.
Euro "EUR", performance has been -0.05% down so far
Pond "GBP", performance has been -0.13% down as of now
Australian dollar "AUD", has dropped by -0.23%
New Zealand dollar "NZD", has dropped by -0.37%
Japanese YEN "JPY", experienced -0.02% fall
Canadian dollar "CAD", has lost -0.07%
Market risk sentiment is OFF, Investors seek safety, favoring safe-haven currencies and assets while selling off riskier investments.

Market Sentiment and Positioning

AUD COT (Commitments of Traders):

Institutions Net Position on >Australian Dollar is -84176 included 43918 long, 128094 short and -8320 position changed from last week.
So they mainly have a bearish view on this asset and sold AUD for lower prices in long-term.
Last week -8320 repositioning Indicates more sell positions and price pressure in short-term.

CAD COT (Commitments of Traders):

Institutions Net Position on >Canadian Dollar is -150414 included 21438 long, 171852 short and -1315 position changed from last week.
So they mainly have a bearish view on this asset and sold CAD for lower prices in long-term.
Last week -1315 repositioning Indicates more sell positions and price pressure in short-term.

Retail Traders:

Crowd traders or Retail traders are bullish on the AUDCAD with 84% 16% ratio. 0 long pos and 0 short position.
We generally adopt a contrarian approach towards crowd sentiment and we give probability AUDCAD prices may decrease.

Technical Levels and Support/Resistance

The AUDCAD pair is approaching a critical technical support level near 0.90884.
Technical trend is Sell, So If the pair continues to weaken, this support could become a significant area to watch for potential reversal or consolidation.
On the upside, there is key resistance near 0.92081. Technically, If the pair continues to the upside, this resistance level could become a significant area to watch for sell entery potential.