With Australian 3 year interest rate swaps coming back to 2.90%...

With Australian 3 year interest rate swaps coming back to 2.90% quarterly (i.e. that suggests an average 90 day BBSW/ RBA Cash rate under 3% for the next 3 years the difference between Australian & Canadian interest rates have compressed.

Given that there are less risks investing in Canada, i.e. carbon tax and they are generally more supportive of mining why wouldn't the AUD fall further against the CAD? Good chance currency traders (who are still long AUD on the carry trade will switch to CAD).

Aust Gov Bonds now not so attractive, overseas investors are going for Semi Gov & Bank Covered Bonds.... once these yields come down (supply & demand) the AUD could fall in a real hole. A falling AUD/CAD will provide support for CPL on the ASX.