Australia is struggling with all the fuss about China’s slowdown and the coronavirus issues there, as the Chinese economy has been showing some pretty bad numbers lately. AUD/CAD is slightly lower during Thursday’s trade as we continue to see quite noisy behavior in this market. Recently we bounced between a low of 0.91 and a high of 0.93. Remember that both currencies are commodity currencies, so there is a bit of a push in the market right now as commodities tend to be very mixed. Advertisement Do you have a place to try? Don’t wait! Trade AUD / USD Currently Earlier in the day, US ADP readings came in much warmer than expected, so the Fed is expected to remain very tight. At this point, the question is which commodity will suffer the most? Remember that the Australian dollar is not only considered a substitute for gold, but also for other metals such as copper and iron. In other words, Australia is very dependent on the rest of the world, especially China, for hard materials. Australia is struggling with all the fuss about China’s slowdown and the coronavirus issues there, as the Chinese economy has been showing some pretty bad numbers lately. Eyes on the Canadian dollar On the other side of this equation is the Canadian dollar. The Canadian dollar is of course heavily tied to a crude oil market that looks anemic at best. However, Canadians have something that Australians do not, and that is the United States. The US continues to grow very fast and therefore Canada benefits because it is the largest trading partner of the US and usually supplies the US with a lot of „stuff”. That said, you have to remember that the Canadian dollar can be pulled by the crude market, so while it may strengthen against the Australian dollar, I don’t expect the Canadian dollar to suddenly become too aggressive against other currencies. especially the US dollar because the demand for crude oil is something that a lot of people are worried about right now. That said, Canada is still in a better place financially than Australia, so if we can break below the 0.9050 level, I think that will confirm a double top and the market should go much lower. On the other hand, we could simply continue trading in this well-defined area.