AUD/CAD outlook: CAD underperformance to resume – Westpac

By FXStreet Sean Callow, Research Analyst at Westpac, suggests that the AUD/CAD should continue to find support around 0.9600, with scope for 0.9850-0.9900 multi-week.

Key Quotes

“We expect both AUD and CAD to struggle against a US dollar supported by rising expectations of Fed tightening later this year, but CAD seems more vulnerable.

The multi-week outlook for prices of key commodity exports is not very promising for either Australia or Canada but we suspect CAD is not pricing enough risk for Canada’s economy.

We also see the RBA remaining firmly on hold whereas market pricing for another Bank of Canada rate cut seems too cautious, just 25% chance priced in by July.”
For more information, read our latest forex news. …read more

Source:: FX Street