28 Apr 2015
AUD/CAD: 0.94 should remain difficult in coming weeks - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, notes that the 0.94 area should remain difficult for AUD/CAD in coming weeks.
Key Quotes
"The 0.94 area should remain difficult for AUD/CAD in coming weeks, with risks overall tilted to the 0.97-0.98 area into mid-year."
"If the RBA delivers another rate cut in May as we expect, this should weigh on AUD/CAD. But this could prove fleeting, with the RBA then likely to hold steady for some time."
"Iron ore prices should stabilize in coming weeks, avoiding the gloomiest scenarios and thus supporting AUD/CAD. Meanwhile, we view the Bank of Canada’s outlook on H2 growth as too upbeat, as low oil prices have a sustained impact on the economy."
Key Quotes
"The 0.94 area should remain difficult for AUD/CAD in coming weeks, with risks overall tilted to the 0.97-0.98 area into mid-year."
"If the RBA delivers another rate cut in May as we expect, this should weigh on AUD/CAD. But this could prove fleeting, with the RBA then likely to hold steady for some time."
"Iron ore prices should stabilize in coming weeks, avoiding the gloomiest scenarios and thus supporting AUD/CAD. Meanwhile, we view the Bank of Canada’s outlook on H2 growth as too upbeat, as low oil prices have a sustained impact on the economy."