After a week filled with lots of geopolitical turmoil, we saw equity markets pushing lower and safe haven FX catch a bid, but despite the overall negative risk tones the AUD kept its composure really well.
Our medium-term bias for AUDCAD remains tilted to the upside and we’ll be keeping a very close eye on this week’s incoming Wage Index data.
We think a big beat or miss in the data could spark some decent volatility in the AUD with the RBA’s relentless focus on wage growth.
We also need to keep a very close eye on overall risk sentiment with the ongoing tensions between Russia and Ukraine.
Even though the AUD kept its cool so far – as a favourite risk proxy, a major military escalation can still weigh on the AUD if the situation really turns ugly.
As always, we have more on this and how we look to potentially take advantage of it in our week ahead video.