AUD/CAD breakout puts the Bradman barrier in sight

AUD/CAD has staged a technical breakout from a wedge pattern dating back to April, climbing to its highest levels since early 2021. The upward momentum has cleared the 23.6% Fibonacci retracement at 0.9939 and pushed above the May 13 high of 0.9958. Technical indicators confirm the bullish momentum, with the 14-day RSI rising well above the 50 level and the MACD indicator displaying a fresh bullish crossover. The move is supported fundamentally by a widening yield spread, as Australia’s two-year yield advantage over Canada expanded by 16.7 basis points across five sessions, reflecting a hawkish repricing of Reserve Bank of Australia rate expectations. In contrast, Bank of Canada rate expectations have eased following escalating trade tensions after the US imposed 50% tariffs on $20 billion of Canadian goods. Technical resistance now centers on 0.9994—the February 2021 swing high dubbed the Bradman barrier. A sustained break above this level could pave the way for an extended rally towards the March 2018 peak of 1.0240.