USD/CAD Sell the Upticks to 1.32-1.33 – Westpac
In view of Richard Franulovich, Strategist at Westpac, bullish attempts in the pair to the 1.32-1.33 area could be regarded as selling opportunities.
“USD/CAD admittedly looks like it’s building a solid beach-head above 1.30 and underlying growth momentum seems to have cooled, certainly weaker retail sales, trade and employment data suggest as much”.
“But, would still favour selling strength into the 1.32-1.33 region. Resilient oil prices fairly value USD/CAD nearer 1.25”.
“The less adventurous may went to sell AUD/CAD or NZD/CAD instead, the substantial outperformance of oil vis-a-vis both iron ore and dairy suggests a relatively less dire terms of trade backdrop for Canada vs either Australia or NZ”.