AUD/CAD Under Pressure as Trade War Escalates

China responded with retaliatory tariffs on US imports, announcing 15% duties on coal and liquefied natural gas (LNG) from the US, alongside 10% additional tariffs on crude oil, agricultural equipment, and automobiles. This deterioration in global trade relations has weakened commodity-linked currencies, particularly the Australian dollar, as China remains its largest trading partner. Meanwhile, the Canadian dollar is relatively stable, benefiting from moderate oil price gains and Canada’s exemption from immediate US tariffs.

Key Technical Levels
• Resistance Levels: 0.90115, 0.90858
• Support Levels: 0.89655, 0.89328, 0.88912, 0.88452

Upcoming Key Economic Events
• Canada’s Trade Balance (Wednesday) – Expected to impact the CAD’s performance, particularly amid ongoing US trade policy uncertainty.
• Australia’s Trade Balance (Thursday) – A weaker-than-expected report could exert further downside pressure on AUD.
• China & Canada’s PMI Data – Investors will closely watch economic sentiment indicators for potential shifts in risk appetite.
• Canada’s Employment Report – Job market strength will be key in determining the Bank of Canada’s future rate policy stance.