Analysts at Goldman Sachs offer their bearish outlook on AUD/CAD, citing “our recommendation to short AUD/CAD is intended to benefit from the divergence between the RBA and BOC.”

Key quotes

“We see the RBA on hold until late 2023 but expect the BOC to hike this coming January.”

“As well as from divergence in the countries' export prices, our commodity strategists forecast upside to crude oil but anticipate a sustained period of weakness for iron ore.”

“In addition to these bottom-up considerations, we also think this trade is favorably exposed to certain top-down factors currently driving macro markets.”