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21 May 2014
AUD/CAD: Further downside likely - Westpac
FXStreet (Bali) - Sean Callow, FX Strategists at Westpac, calls for further weakness in the AUD/CAD.
Key Quotes
"The 2014 highs on AUD/CAD should be in place, with risks of further decline in coming weeks, towards 0.98-0.99. Bank of Canada governor Poloz has sounded notably less dovish of late as inflation has ticked up while AUD should be weighed by sluggish growth and soft commodity prices."
"In order to extend losses much further however, we would probably need to see the US economy beat market expectations and/or see RBA easing being discussed, not our base case."
Key Quotes
"The 2014 highs on AUD/CAD should be in place, with risks of further decline in coming weeks, towards 0.98-0.99. Bank of Canada governor Poloz has sounded notably less dovish of late as inflation has ticked up while AUD should be weighed by sluggish growth and soft commodity prices."
"In order to extend losses much further however, we would probably need to see the US economy beat market expectations and/or see RBA easing being discussed, not our base case."