AUD/CAD to slide towards the 0.88 zone on a berak under 0.8970/75 – Scotiabank

AUD/CAD retains a weak tone as the market continues to pressure the 0.8970/75 area. Economists at Scotiabank expect the pair to drop towards the 0.88 region.

Technical factors remain broadly negative

“Trend signals are aligned bearishly for the AUD/CAD across a range of timeframes and continue to suggest that a powerful downtrend remains intact.”

“We still look for a clear push under 0.8970/75 to drive additional AUD losses towards the 0.88 area (61.8% of the 2020/2021 rally at 0.8805).”

“Minor gains in the cross remain a sell.”