Live and Historical AUD/CAD Rates
Above is a chart of the Australian and Canadian dollars. This is not considered a major pair. Both countries are heavily dependant on commodity exports, but because of the relatively low volume of currency traded, this is not considered a commodity pair either.
The Australian Dollar
While the international currency relationships were maintained under the Bretton Woods system, the Australian dollar made its debut in 1966 pegged to the sterling. By 2007 the Australian dollar accounted for approximately 3.3% of the foreign-exchange turnover. Currency traders find the Australian dollar a good asset for their portfolios due to Australia’s freedom, the strength of their foreign exchange markets and the stability of their government. Moreover, the Australian dollar has unique advantages in diversification because of exposure to Asian markets. It is the sixth most traded currency in the world foreign exchange markets. Some of Australia’s top commodity exports are Iron Ore, Coal, Gold, Crude Oil, and LNG.
The Canadian Dollar
The Canadian dollar was initiated in 1858 after nearly two-decades of dispute concerning the practicality of their currency. Under the imperial authorities of London, the Canadian pound was first introduced in 1841 and was pegged to the sterling in a concerted effort to maintain the sterling as the sole currency throughout the British Empire. Most inhabitants of Canada, desiring to increase trade with the neighboring U.S., earnestly lobbied for the assimilation of the Canadian currency to the American unit. As of 2007, the Canadian dollar is the seventh most traded currency in the world. More than 25% of Canadian exports are derived from Base Metals, Forestry Products, and Crude Oil
Both of these currencies are within the top-10 traded on international markets. However, given similarities in their economic structure, they are not as commonly traded as the major pairs. The key element to watch in this pair is the strength of the USD and the euro. A strong USD will throw both currencies off of their highs. Also, both currencies are heavily influenced by their commodity exports. Watch commodity indices that correspond to each of these countries. Also note a country’s commodity reserve when making a play. If either country amasses excessive commodity reserves, it can spell trouble in the near future.