Westpac looking for the Australian dollar lower against the Canadian dollar in 2018. This forecast baesd on the divergent monetary policy divergence in both countries.
As the Bank of Canada tracks the FED’s moves and continues to raise interest rates, the Reserve Bank of Australia continues to maintain its expansionary policy that devaluate the currency. It is expected that the Bank of Canada will decide to rise again by the middle of this year.
Also weighing on the Australian dollar may be the outlook for slowing growth in the Chinese economy in 2018, which could lead to devaluation as Australian dollar. The AUDCAD is expected to stabilize near 1.01 / 1.02 in the second quarter.
