16 Jun 2015
AUD/CAD sees upside risks – Westpac
FXStreet (Barcelona) - Sean Callow of Westpac maintains an upside bias on AUD/CAD into Q3, expecting a move higher towards 0.9700/50.
Key Quotes
“AUD/CAD continues to bounce off strong support at 0.94 and should not break this level convincingly multi-week. We see risks tilted modestly higher, to 0.9650 over one month, 0.9700/50 at a stretch.”
“Neither AUD nor CAD should trade very strongly versus the US dollar in early Q3 as the recovering US economy encourages the Fed to weigh a Sep rate hike.”
“But AUD should outperform slightly as the RBA’s cautiously upbeat spin on the economy produces a somewhat more convincing case for steady rates than a similar view at the Bank of Canada. We see the oil price fall as having a more sustained impact on Canada’s growth than the BoC view.”
Key Quotes
“AUD/CAD continues to bounce off strong support at 0.94 and should not break this level convincingly multi-week. We see risks tilted modestly higher, to 0.9650 over one month, 0.9700/50 at a stretch.”
“Neither AUD nor CAD should trade very strongly versus the US dollar in early Q3 as the recovering US economy encourages the Fed to weigh a Sep rate hike.”
“But AUD should outperform slightly as the RBA’s cautiously upbeat spin on the economy produces a somewhat more convincing case for steady rates than a similar view at the Bank of Canada. We see the oil price fall as having a more sustained impact on Canada’s growth than the BoC view.”