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AUD/CAD MARKET OPEN (AS OF MAR 01, 09:30 AM GMT-4)

0.883 CAD

+0.001(+0.0805%) 24h

What is AUD/CAD Pair?

AUD/CAD is the exchange rate between the quotation currency, which is the Canadian dollar, and the base currency, which is the Australian dollar. It is understandable that the Canadian dollar is stronger than the Australian dollar.

Frequently Asked Questions

Sevens Capital is a high-end online trading firm that assists investors in maximising their stock market returns. We have assembled a team of experts and professionals to assist traders in understanding the investment in the forex market and how to maximise profits from it.

The lineup of currency pairs, when looked at at first glance, can be extremely revolting for a person who has zero basic knowledge of the workings of the forex market. But, once the market is analysed and understood,the intimidation slowly wears off. 

The market is traded between large financial institutions, and hence the volume of trade can be pretty high. But this helps make entry and exit into the forex market easier.

This has been a common plight of newbie traders who want to enter the forex market but get confused with the basic idea of currency pairs and their exchange. In this scenario, let us take the example of AUD/CAD. If you have analysed the fact that there are chances for the Australian dollar to rise and the Canadian dollar to fall then by buying the currency pair AUD/CAD, you are using a CFD to purchase AUD and sell CAD.

A pip is considered to be the smallest increment of trade in the foreign exchange market. It is an acronym for “percentage in point.” The currency pair is quoted in decimal points, so pip is the lowest figure that can be added to or subtracted from the figure.

A lot is a trading unit that represents the standard trading unit in the forex market. A lot usually consists of or represents a transaction of 1,00,000 units, and the value of 1 micro lot is 1000 units. A micro lot 0.01 lot, and on similar grounds, a mini lot is calculated to be 0.1 lot.

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AUD/CAD trading

AUD/CAD is the exchange rate between the quotation currency, which is the Canadian dollar, and the base currency, which is the Australian dollar. It is understandable that the Canadian dollar is stronger than the Australian dollar. 

Australia ranks 50th in the world when it comes to population and 14th when it comes to GDP. The small size of the country doesn’t matter, as the Australian dollar is among the five most traded currencies in the world. 

The Canadian dollar occupies a relevant space among the ten most traded currencies in the international stock market. The Canadian dollar is one of the currencies that puts forward one of the best competitions against the US dollar. 

The Canadian dollar is considered to be far less risky as it closely resembles the US dollar. This gives the pair far more advantages than the rest of the minor pairs listed.

History of the AUD/CAD

The Australian dollar was earlier known as the Australian pound. The country used sterling for a long time until it became devalued against the dollar. It was after this that Australia adopted the Australian dollar, which is a decimal currency instead of the old imperial system. 

Australia is also close to Asian countries, which has made it stronger over the years. 

The Canadian dollar on the other hand was released during the 1850s. The Canadian dollar was originally known as the Canadian pound. It changed when Canada wanted to strengthen its allies with the US dollar. 

The Canadian dollar has grown over the years and is now the 9th largest in the world. 

Performance of AUD/CAD

The trading outcome of AUD/CAD has been following a stable trend for the last 30 years, and it has been ranging between 0.80 and 1.05. As the global economy faced the pandemic in 2020, prices hit their lowest point of 0.80. As the Canadian dollar is positively correlated with oil prices, it has been supporting its base currency, the Australian dollar. 

The currency pair is not ideal for long term investors and holders as it follows a sideways trend. Swing traders, on the other hand, can actually benefit from investing in the pair as it gives good momentum that ranges from weeks to months. 

Major Bodies Influencing the AUD/CAD / PRICE DRIVERS

Chinese economy: As the major recipient of Australian exports, China has a fairly good impact on the AUD/CAD value.The growth of China as a globally competitive economy has actually strengthened the Australian dollar. Chinese expansion can only help the Australian dollar grow.

Reserve Bank of Australia: This is the Central Bank of Australia, and its board members meet every month on the first Tuesday except for January. The minutes of the meeting are published later on, which needs to be tracked and understood. 

The Bank of Canada (BoC): this is the central banking institution of Canada. They mostly help with the stabilisation of the currency, maximum employment, and exponential growth. When the pandemic hit Canada in 2020, the Bank of Canada cut the prime lending rate to 0.25 percent and started buying debt from the market to create a balanced situation.

AUD/CAD Correlations

The AUD/CAD has a positive correlation with currency sets like AUDCAD-AUDUSD, AUDCAD - EURHUF, AUDCAD - NZDCAD, AUDCAD - USDHUF, AUDCAD - USDPLN, etc. The negative correlation is with currency pairs like AUDCAD - GBPAUD, AUDCAD - CADJPY, AUDCAD - GBPSGD, AUDCAD - GBPSEK, etc.

The Canadian dollar is also heavily influenced by oil prices. The Australian dollar, on the other hand, is dependent on the prices of industrial metals such as iron ore, copper, and others.

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