Here is the Aussie Dollar with the Canadian Dollar overlaid for reference. I didn't make a Ratio chart so you could see both interact together better. The Aussie $ and Canadian $ are both considered 'commodity currencies'. The big difference is Canada sells about 70% of its exports to the U.S. which is economically weak right now and not buying as much as it normally would in better times. Australia is selling its commodities etc to China which was booming flat out but has a history of boom and bust economics that soar and plunge with various erratic regulation that jump starts the economy and then slams on the brakes like a teenager learning to drive. So you see Australia raise interest rates with their booming economy thanks to China and then on a China slow down start cutting interest rates. This has a dramatic effect on the currency. As far as I'm concerned the currency markets are a basket case and with each country changing from loose money to tight money you' be better to play black jack at a Casino for better odds of success. Just look at the Swiss Franc that was soaring until they couldn't deal with a strong currency anymore and suddenly pegged their Franc to the Euro. That trashed the Franc so they can export. Canada is doing very well economically with the strongest banking system in the world and nothing more than a mild slow down in some businesses. But as soon as the Can$ got above par and ran up to 1.06 other countries took away roughly 25% of Canada's exports to the U.S. as they could undercut Canada with their lower currency values. The Can Government knows this and will always trash the Can$ when it goes over 1.00 par one way or the other. So trying to trade CD/AD is a coin flip as far as I'm concerned and no one in the world is smart enough to see the future of both currencies unless they are clairvoyant. Especially two commodity currencies like this that tend to track in the same direction much of the time. Too many variables to quantify from what I see.