- AUD/CAD crashed in Q1 2020, but rebounded sharply, and the pair continues to trade near its yearly highs.
- However, downside is likely, owing to the fact that the pair is probably still fundamentally overvalued.
- Yet downside is likely to be met with subsequent price consolidation. While markets may readjust lower, trailing economic data favors AUD over CAD.
- As more data is released, we may be able to build a case for additional downside. For now, downside is likely to be limited to the 0.91 handle.
- Other possible risks to consider, such as increased macroeconomic uncertainty through the winter, could also produce AUD/CAD weakness.
For further details see:
AUD/CAD: Downside And Price Consolidation Are Likely In The Near Term As Market Readjusts