Report published September 23, 2026
Scotiabank Daily FX Update: USD Gains Extend on Yields, Spreads (September 23, 2026)
Scotiabank · September 23, 2026
The US Dollar strengthened broadly to its highest level since late July, lifted by widening front-end yield spreads and expectations of tighter Federal Reserve policy. Meanwhile, USDCAD trades around 1.4085 with technical targets at 1.4125, while AUDCAD tests parity for the first time in nine years.
Read the remaining 3 pages
Finvaulta summarizes Scotiabank's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Key Takeaways
- 1.The US Dollar (DXY) is extending broad gains toward late-July highs, supported fundamentally by widening front-end 2Y yield spreads and Fed tightening expectations.
- 2.USDCAD technicals are short-term bullish with spot holding above 1.4050, heading toward 1.4125, while CAD faces seasonal Q4 fundamental headwinds.
- 3.AUDCAD is testing parity for the first time in nine years, backed by strengthening fundamentals ahead of Australian employment data.
Table of Contents
- Overview
- USD Gains Extend on Yields, Spreads
- AUDCAD Par Test Looks Justified
- TODAY'S CALENDAR
Report data
AUDCAD Par Test Looks Justified
| Metric | Estimate | Context |
|---|---|---|
| DXY Spot Index | 100.85 | DXY spot index versus estimated equilibrium fair value of 101. |
| DXY Estimated Equilibrium Fair Value | 101 | Fair value estimate based on Scotiabank model utilizing 2Y yield spreads. |
| USDCAD Spot Rate | 1.4085 | USD gains lift funds to the highest since late July. |
| Brent Crude Price | 100 USD/bbl | Energy prices holding Brent crude just below $100 per barrel. |
| Australian Employment Change Forecast | 20.0 k | Consensus forecast for Australian employment change following July's drop of 15.8k. |
Reports in this series
Daily FX Update is shown in chronological order through this edition, published on September 23, 2026.
Part of the Daily FX Update series — view all 31 editions
Looking for the latest edition? G10 FX Daily (Oct 8, 2026)
- Sep 14G10 FX Daily
- Sep 16G10 FX Daily
- Sep 21G10 FX Daily
- Sep 22G10 FX Daily
Access the full report
And others from the leading tier 1 banks.
Free account: read previews and a daily allowance of full reports. Pro removes the daily limit.