AUD/CAD Reverses Lower as China Slowdown, RBA Pause, and Oil Surge Shift Momentum to Loonie

AUD/CAD reversed lower as risk sentiment soured, weak Chinese data and fading odds of an RBA June hike undermined the Australian dollar while rising oil prices supported the Canadian dollar. Traders trimmed bets for a June RBA tightening, pushing a possible next move toward August. Technically the pair’s pullback from 0.9957 and a reversal near the 0.9991 (2021 high) plus daily MACD bearish divergence suggest upside momentum is fading and a medium-term top may be in place. Near-term support is at 0.9721; a decisive break below that would open a deeper correction toward 0.9554 (38.2% retracement of the 0.8902–0.9957 move), particularly if risk sentiment worsens and oil stays elevated.