Mapping the Market: Loonie versus aussie tells trade-tension tale for Canadian dollar
FXC•What the chart shows
- Aussie at 5-1/2-year high of 0.9979 versus loonie
- Break above 0.9993 would target parity, then 1.02 and 1.04
- Drop below 0.9750 needed to signal Canadian dollar strength
Canadian dollar holds up against U.S. currency
The Canadian dollar has held up relatively well against the U.S. currency since Donald Trump took office in January 2025, suggesting tariff hostilities haven't caused major weakness. But the loonie's slide against the Australian dollar looks more telling, and technical analysis suggests it may be on the cusp of a bigger drop.
Usually quoted in Australian dollars per Canadian dollar, a rising price graph means the Canadian dollar is weakening.
Key levels that could signal Canadian dollar strength
However, the loonie's weakening trend could stall if the aussie slips back below the upper Bollinger band at 0.9946 and the May 2026 high of 0.9958. Bollinger bands are a moving-average-based system that helps technical analysts measure volatility and determine whether a market is overbought or oversold.
Such a pullback could send traders looking to support around 0.9897-0.9908, while a break below 0.9750 would be needed to confirm a bullish turn for the Canadian dollar.
Aussie reaches five-and-a-half-year high versus loonie
Amid the recent flare-up in U.S.-Canada trade tensions, the aussie climbed to 0.9979 against the Canadian dollar, its highest level in five and a half years, according to data supplied by LSEG.
