Direction of commodity currencies. Westpac’s forecasts

Direction of commodity currencies. Westpac’s forecasts

2019-11-11 • Updated

In the environment of trade wars, a lot of currencies are suffering. We can say that the most negative impact trade wars have on the Australian and the Canadian dollars. Both commodity currencies are suffering from volatility now. Let’s look at Westpac’s forecasts to determine if the loonie and the aussie have a possibility to strengthen.

Note: Westpac is one of Australia's "big four" banks and the second largest bank in New Zealand.

We will start with the Canadian dollar. According to the Westpac’s analyst, threats of trade wars and accommodative policy of the Bank of Canada are exaggerated. If we talk about the trade wars, risks of the US-Canada war have declined as the last one was excluded from Trump’s steel and aluminum tariffs. Moreover, there is a progress in NAFTA negotiations.

What about the BOC policy? Expectations on the BOC’s tighter monetary policy declined, however, the central bank is still anticipated to increase interest rates for the first time to the middle of 2018 and second time to the end of the year.

So market’s negative mood is supposed to slow down in the soon future.

What about rates? Westpac supposes that the USD/CAD unlikely will get a strong support at 1.30-1.35.


The Australian dollar. Ahead of the release of the interest rate, the AUD/USD pair traded at the three-month low. However, the aussie managed to strengthen after the Fed’s meeting as the rate hike could not support the greenback.

The Australian dollar is still under the pressure because of trade wars that dramatically affect the currency. Furthermore, declining prices of basic commodity goods produced in Australia, have a negative impact on the Australian currency.

However, Westpac’s analyst notices that new workplaces and a weakening dollar will be able to support the stability of the AUD/USD pair, so it will trade near 0.77.



Oil Market Outlook
Oil Market Outlook

Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.

What will move the market on September 6-10?
What will move the market on September 6-10?

Last Friday’s NFP was disappointing. The reaction of the markets was astonishing. Will it last longer? Let's find out the main trade opportunities for the upcoming week.

Latest news

Bitcoin 2024: The Story Is Cyclical
Bitcoin 2024: The Story Is Cyclical

In the dynamic world of financial trading, understanding the nuanced relationship between the Federal Reserve's key interest rates and Bitcoin can be a game-changer…

Will NFP Be Positive for the US Dollar?
Will NFP Be Positive for the US Dollar?

As the US Non-Farm Payrolls (NFP) take center stage, this month's data gains special attention, particularly after the unemployment rate took a concerning turn in the previous month. The US ADP Employment Change reveals a significant decline, with the economy adding 298K new jobs...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera