{"id":79031,"date":"2026-09-29T11:59:42","date_gmt":"2026-09-29T11:59:42","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2026\/09\/29\/posthaste-never-mind-the-greenback-now-the-canadian-dollar-is-losing-ground-to-the-aussie-buck\/"},"modified":"2026-09-29T11:59:42","modified_gmt":"2026-09-29T11:59:42","slug":"posthaste-never-mind-the-greenback-now-the-canadian-dollar-is-losing-ground-to-the-aussie-buck","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2026\/09\/29\/posthaste-never-mind-the-greenback-now-the-canadian-dollar-is-losing-ground-to-the-aussie-buck\/","title":{"rendered":"Posthaste: Never mind the greenback, now the Canadian dollar is losing ground to the Aussie buck"},"content":{"rendered":"<p> \n<br \/><iframe loading=\"lazy\" title=\"Why Bank of Canada can afford to stay on sidelines for now\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/3QJTvwS38t0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/01\/fp-posthaste-LOGO-01132023.jpg\" title=\"\" \/><\/p>\n<p> The Canadian dollar has been under pressure this month, losing more than two per cent to fall below 71 U.S. cents as the U.S. Federal Reserve raised interest rates and the greenback gained. <\/p>\n<p> But it\u2019s not just a strong U.S. dollar story this time, said Douglas Porter, chief economist of BMO Capital Markets. The loonie has also been losing ground against other currencies. <\/p>\n<p> For the first time since 2018, the Canadian dollar is at parity with the Australian dollar on a sustained basis, he said. Just last year, the loonie was worth A$1.12, but then Donald Trump launched a trade war. <\/p>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/09\/canadian-dollar-0929-ph.jpg\" title=\"\" \/><\/p>\n<p> Since then the two countries\u2019 economies have diverged \u201csharply,\u201d with Canada\u2019s gross domestic product slumping to 1.6 per cent and Australia\u2019s storming ahead to 3.3 per cent, more than double. <\/p>\n<p> Today, the Reserve Bank of Australia raised its rate to 4.6 per cent, taking borrowing costs to the highest level in 15 years to cool inflation. Tuesday\u2019s hike takes tightening this year to a full percentage point. <\/p>\n<p> As for the Canadian dollar, things are getting worse, before they get better, said CIBC economists Avery Shenfeld and Katherine Judge. <\/p>\n<p> The Fed is expected to follow up its September move with another hike in October, which will widen the gap with the Bank of Canada\u2019s rate and put more pressure on the loonie. <\/p>\n<p> Unlike the markets, CIBC does not think Canada\u2019s central bank will rush to follow. They say the latest flareup in the trade war will weaken the economy and likely push the unemployment rate to 6.6 per cent, offsetting the risk of higher inflation from oil prices. <\/p>\n<p> \u201cThat will leave CAD under pressure in the near term,\u201d said the economists who expect the currency to average about 70.42 U.S. cents in the last quarter of the year. <\/p>\n<p> They are more upbeat about the loonie in 2027. They speculate that Trump will be more willing to make concessions for an Iran deal after the midterm elections, which would put an end to Fed hiking. <\/p>\n<p> They also expect Canada\u2019s trade negotiations with the United States to result in Trump rolling back his Section 338 tariffs and calling off plans to double penalties on the auto industry in the new year. <\/p>\n<p> \u201cWe are therefore more optimistic for the loonie in 2027, when prospects for an economic expansion tied to a trade deal with the U.S. could prompt the BoC to hike rates early in the year.\u201d <\/p>\n<p> By the middle of next year, the Canadian dollar should be back to almost 73 U.S. cents, they said. <\/p>\n<hr \/>\n<p> <em><strong>Sign up here to get Posthaste delivered straight to your inbox.<\/strong><\/em> <\/p>\n<hr \/>\n<p> <strong><img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-1758646\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2019\/02\/subhead_leading.png\" width=\"838\" \/><\/strong> <\/p>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/09\/population-chart-0929-ph.jpg\" title=\"\" \/><\/p>\n<p> Canada\u2019s population target is looking increasingly out of reach, say economists. <\/p>\n<p> Desjardins Group says if current immigration levels and natural population growth trends hold, the number of non-permanent residents (NPRs) in Canada would have to fall by about 905,000 by the end of next year. That\u2019s about double the government\u2019s previously estimated decline. <\/p>\n<p> Because cuts so far focused mainly on students, future restrictions may target other categories such as temporary foreign workers unless changes are made to the goal. <\/p>\n<p> Read more about Canada\u2019s population here <\/p>\n<hr \/>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/07\/subhead-1.jpg\" title=\"\"><\/p>\n<ul>\n<li><strong>Today\u2019s Data:<\/strong> Canada GDP for July, U.S. Conference Board Consumer Confidence index<\/li>\n<li><strong>Earnings:<\/strong> Carnival Corp. Ltd.<\/li>\n<\/ul>\n<hr \/>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/02\/banner.jpg\" title=\"\" \/><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/09\/chart-0929-ph.jpg\" title=\"\" \/><\/p>\n<figure class=\"embedded-image\"><\/figure>\n<hr \/>\n<p> <strong><img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-3080181\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2022\/07\/subhead_reads.jpeg\" width=\"838\" \/><\/strong> <\/p>\n<ul>\n<li>This woman trades in a murky market crucial to Carney\u2019s pipeline deal \u2014 and the stakes are enormous<\/li>\n<li>Irving Oil\u2019s pick of new CEO signals change coming, experts agree<\/li>\n<li>Garry Marr: A desk of your own is the perk missing from the return to the office. Could it make a comeback?<\/li>\n<\/ul>\n<hr \/>\n<p> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-2059284\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2020\/04\/subhead_personal_finance_2.png\" width=\"838\" \/> <\/p>\n<p> Is the so-called Mortgage Renewal Cliff making a comeback? MortgageLogic.news strategist Robert McLister says with bond yields rising and markets betting on Bank of Canada rate hikes, mortgage borrowers could once again be facing big increases when they renew. Read more on how you should prepare. <\/p>\n<hr \/>\n<p> <span><\/span><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/11\/FP-West-Energy-Insider-Logo.png\" title=\"\" \/> Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country\u2019s most important sectors. Sign up here. <\/p>\n<hr \/>\n<div class=\"x_elementToProof\"><span>Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at <\/span>wealth@postmedia.com<span><\/span><span> with your contact info and the gist of your problem and we\u2019ll find some experts to help you out while writing a Family Finance story about it (we\u2019ll keep your name out of it, of course).<\/span><\/div>\n<hr \/>\n<h2>McLister on mortgages<\/h2>\n<p> Want to learn more about mortgages? Mortgage strategist Robert McLister\u2019s Financial Post column  can help navigate the complex sector, from the latest trends to financing opportunities you won\u2019t want to miss. Plus check his mortgage rate page for Canada\u2019s lowest national mortgage rates, updated daily. <\/p>\n<hr \/>\n<h2>Financial Post on YouTube<\/h2>\n<p> Visit the Financial Post\u2019s YouTube channel for interviews with Canada\u2019s leading experts in business, economics, housing, the energy sector and more. <\/p>\n<hr \/>\n<p> <em>Today\u2019s Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff and Bloomberg.<\/em> <\/p>\n<p> Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com . <\/p>\n<hr \/>\n<ul class=\"related_links\">\n<li>How Trump&#8217;s threatened diesel ban could fan the flames of the world&#8217;s fuel shock<\/li>\n<li>The stock market&#8217;s fear index is scary, says economist \u2014 but not for the reason you think<\/li>\n<\/ul>\n<p> <em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here<\/em> <\/p>\n<p><\/img><br \/>\n<br \/>\n<br \/>Posthaste: Never mind the greenback, now the Canadian dollar is losing ground to the Aussie buck<\/a><br \/>\n<br \/>2026-09-29 11:59:42<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Canadian dollar has been under pressure this month, losing more than two per cent to fall below 71 U.S. cents as the U.S. Federal Reserve raised interest rates and&#8230;<\/p>\n","protected":false},"author":2,"featured_media":79032,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-79031","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/79031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=79031"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/79031\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/79032"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=79031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=79031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=79031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}