Aussie-Canadian Pair Movement Forecast Today
AUD/CAD on the economic level
The AUD/CADpair fell today after negative data from the Australian economy, as Westpac-Melbourne consumer confidence fell 9% month-on-month in December 2025, and inflation emerged as the most important concern, as Westpac noted that CPI readings have exceeded expectations for almost four consecutive months.
This ongoing price pressure has made consumers more cautious about interest rates, especially after the Reserve Bank of Australia signaled last week that it is likely to have stopped cutting them.
Also today, the composite PMI fell to a seven-month low, service sector growth slowed, while manufacturing activity saw a slight improvement.
On the other side of the Canadian economy, there are no important data today, but yesterday's Canadian inflation data was released where the headline CPI stabilized at 2.2% and the adjusted average interest rate fell to a 10-month low of 2.8%, reinforcing the view that price pressures are converging towards the Bank of Canada's target without forcing it to change its monetary policy abruptly.
Under these circumstances, the Bank of Canada's decision to keep rates at 2.25% and its assessment that monetary policy is 'appropriate' has dampened expectations of sharp monetary easing in the near term, stabilizing Canadian interest rate differentials and supporting demand for the Canadian dollar.
AUD/CAD on a technical level
The pair is trading inside a bearish price channel on the four-hour frame, and the pair is trying to form a Harmonic Bat pattern targeting 0.9080 levels.
The pair's best selling areas are near the levels of the upper border of the descending channel at 0.9160 with a target of 0.9080.
After the completion of the pattern, we can consider buying the pair with targets to be determined later.
This scenario will fail if the 0.9170 levels are broken upwards with at least a 4-hour candle in case of selling.
Also, a break of 0.9040 levels in case of buying.
