Australian Dollar To Canadian Dollar Exchange Rate History
The Australian dollar (AUD) and Canadian dollar (CAD) are both commodity currencies that are heavily influenced by the prices of natural resources such as oil, gold, and coal, as well as global economic conditions. The exchange rate between the two currencies has fluctuated significantly over the years, reflecting changes in the relative strength of their economies and the demand for their exports.
1970s-1990s: The Early Years
When the Australian dollar was first introduced in 1966, it was pegged to the British pound, which was also the case for the Canadian dollar. However, in the early 1970s, both countries moved away from the pound and adopted a floating exchange rate system.
In the mid-1970s, the Australian dollar was worth slightly more than the Canadian dollar, although the exchange rate was relatively stable. However, in the early 1980s, the value of the Australian dollar began to rise rapidly due to strong economic growth and high interest rates, while the Canadian dollar struggled due to weak commodity prices and high inflation.
By 1983, the Australian dollar was worth more than twice as much as the Canadian dollar, with an exchange rate of around 1.20 AUD/CAD. This trend continued into the 1990s, with the exchange rate peaking at around 1.70 AUD/CAD in 1991.
2000s-2010s: Volatility and Recovery
The early 2000s were a period of volatility for the AUD/CAD exchange rate, with fluctuations driven by changing economic conditions and political events. For example, the exchange rate dropped sharply in 2002 during the global economic downturn, but then recovered quickly due to rising commodity prices.
However, the global financial crisis of 2008-2009 had a significant impact on both the Australian and Canadian economies, and the exchange rate between the two currencies dropped sharply. By 2009, the exchange rate had fallen to around 0.80 AUD/CAD, a level not seen since the late 1990s.
Since then, the exchange rate has recovered somewhat, but remains volatile. In 2012, the Australian dollar reached a record high against the Canadian dollar, with an exchange rate of around 1.10 AUD/CAD, but it has since fallen back to around 0.90 AUD/CAD.
Factors Affecting the Exchange Rate
The exchange rate between the Australian dollar and Canadian dollar is influenced by a variety of factors, including:
- Commodity prices: Both currencies are heavily influenced by the prices of natural resources such as oil, gold, and coal, which can fluctuate significantly.
- Economic conditions: Strong economic growth and high interest rates can boost the value of a currency, while weak economic conditions and low interest rates can have the opposite effect.
- Political events: Changes in government policy, trade agreements, and geopolitical tensions can all affect the exchange rate.
- Inflation: Higher inflation can reduce the value of a currency, while lower inflation can boost its value.
The Future of the AUD/CAD Exchange Rate
The future of the AUD/CAD exchange rate is uncertain, as it is influenced by a wide range of factors that are difficult to predict. However, some analysts believe that the exchange rate may continue to be volatile in the short term, due to ongoing economic uncertainty and geopolitical tensions.
In the longer term, the exchange rate may be influenced by factors such as the growth of the Chinese economy (which is a major trading partner for both Australia and Canada), changes in global commodity prices, and shifts in global economic power.
Conclusion
The exchange rate between the Australian dollar and Canadian dollar has fluctuated significantly over the years, reflecting changes in economic conditions, commodity prices, and other factors. While it is difficult to predict the future of the exchange rate, it is clear that it will continue to be influenced by a wide range of factors, and may remain volatile in the short term.