AUD/CAD’s break under the base of the recent range around 0.91 likely condemns the AUD to more weakness moving ahead. Economists at Scotiabank expect the pair to drop towards 0.88.

Technical indicators are aligned bearishly for the AUD

“The daily, weekly and monthly DMI oscillators are aligned bearishly for the AUD which will limit its powers of recovery for now and maintain focus on the downside.” 

“We expect solid resistance now on AUD gains to the 0.91 area and feel risks have tipped quite a bit more strongly towards a drop in the AUD to 0.88.”