AUD To CAD 2023 Forecast

AUD To CAD 2023 Forecast: An In-Depth Look

Today, one of the top 10 most traded currencies in the forex market is the Australian Dollar (AUD), followed by the Canadian Dollar (CAD).

In the past few months, both currencies have shown an upward trend in growth.

However, this could quickly dip as both are greatly influenced by commodity prices and trends, making their exchange rate a critical factor for businesses and investors.

So, are you an investor, or will you visit Canada soon and wonder what the AUD to CAD exchange rate will be in 2023?

Not to worry, Foreign Xchange has carefully analysed the AUD To CAD market trend for 2023 to tell you more about the future of these currencies and the factors that affect them.

What Should We Expect From The AUD To CAD Exchange Rate In 2023?

Exchange Rate

The Australian Dollar and the Canadian Dollar are both known as commodity currencies.

The AUD currency saw an upward turn as the year began, thanks to the revival of the Chinese economy and despite the inflation faced in Australia towards the end of 2022.

Ultimately, the AUD will likely have a volatile year against several top trading currencies.

Predictions for the Canadian Dollar can change due to relative views toward the country’s economy.

However, the year 2023 will hold a positive outlook for the Canadian Dollar as the focus of the forex market will drift away from the recent inflation to positive growth in the latter part of the year.

If the market doesn’t experience any drastic changes, both the Canadian Dollar and the Australian Dollar will experience increases in their values.

For January, the exchange rate of 1 AUD to CAD was about 0.9534, making it the highest rate in 2023.

Using the Foreign Xchange currency converter to find out the current rate for February, we discover that the AUD to CAD dollar trades at 0.8993, while the Canadian to Australian Dollar trades at 1.11.

Currency Converter

The CAD and AUD forecast when you convert Australian dollars to Canadian dollars in the year 2023 is predicted to reach:

  • 0.919 in the month of March
  • 0.934 in the month of April
  • 0.945 in the month of May
  • 0.973 in the month of June
  • 0.957 in the month of July
  • 0.943 in the month of August
  • 0.948 in the month of September
  • 0.954 in the month of October
  • 0.930 in the month of November
  • 0.933 in the month of December

Predictions Of The Australian Dollar In 2023

The Australian Dollar has proven to be one of the most stable currencies to trade with.

Though this may seem like an obvious trading choice upon initial assessment, there are several reasons to exercise caution as you trade.

The reason is that the strength of the country’s economy is tied to its trade relationship with Asia.

Therefore, the commodity demand in China, India, and Japan increases the currency value. A reduction in these demands will only lead the Australian Dollar to fall.

Currently, the AUD is the sixth most traded currency in the forex market and a sturdy premiere currency of the Asia-Pacific region.

This Australian dollar forecast will remain positive in 2023 as long as the trade connections with China remain solid.

This seems like an easy feat, as the currency is known to have an average daily trading volume of about $479 billion.

 

Predictions Of The Canadian Dollar In 2023

Canada saw a significant setback in the last few years as the Covid-19 pandemic massively impacted its economy.

Thankfully, the effect of the pandemic on the country’s economy has significantly reduced, opening the country to a faster recovery.

However, according to Reuters, Canada is set to hit a rough patch in the first half of the year and then bounce back by the second.

Though the Canadian dollar forecast for 2023 shows positive growth in the global market, it still needs to be more stable to be relied on.

 

How Are The AUD To CAD Performing In The Forex Market?

The Australian dollar to Canadian dollar exchange rate in the forex market indicates the fall or rise in both countries economies.

Today’s AUD to CAD performance in the forex market is typically based on a small percentage of economic variables like interest rates.

However, traders incorporate an extensive range of financial data into their investments, which can move the market rate -the same way an investor can move the stock- to or away from its value.

 

Major Influencers Affecting The AUD To CAD Exchange Rate?

Predicting the direction of the AUD/CAD exchange rate shouldn’t be taken lightly, considering how many factors can influence the exchange rate volatility.

Key influences on the AUD are;

1. The Economy

Exporting metals and other commodities to China majorly influences Australia’s economy.

When there’s growth in the Chinese economy, the value of the Australian dollar is immediately impacted, and it rises too.

The downside is that when there’s a pause in China’s economic growth, it also negatively impacts the AUD.

2. Politics

Since China is Australia’s leading trading partner, a deterioration in relations between these countries could cause the Australian Dollar to fail.

3. Other Currencies

The Australian Dollar also has interesting relationships with other currencies, so the value of the AUD can depend on the fall and rise of different currencies.

Key influences on the CAD are;

1. Inflation

Canada has faced inflation threats in the last few months, although the central bank has dismissed this.

However, due to the country’s long-standing partnership with the US, the inflation from the US may be transferred into Canada, lowering their currency value.

2. Geopolitics

Geopolitical tension is a major influence on the value of the CAD, and this tension can easily disrupt global trade and affect Canadian dollars.

3. Price Of Oil

As a major producer and distributor of oil, Canada’s economy relies extensively on its sales and production.

A halt in exporting this oil may have crippling effects on the country’s currency value.

 

Conclusion

The analysis summary shows that trade between the AUD and CAD forex pair remains uncertain.

A wiser approach when considering the market trend will be to trade the CAD to AUD, as the Australian Dollar has shown more volatility than the former.

Therefore, if you are seeking to take your current investment to the next level or ready to make an Australian dollar -Canadian dollar money transfer, you can head over to Foreign Xchange.

There you’ll get the best trading offers, currency converter, currency analysis, and financial guide anywhere you are.

Contact us today to begin.

2024-05-22T00:33:04+00:00