- AUD/CAD: Downside is an appropriate expression of diverging monetary policy stories – Credit Suisse
Market news
1 June 2022
AUD/CAD: Downside is an appropriate expression of diverging monetary policy stories – Credit Suisse
The upcoming days feature two key central bank rate decisions: the Bank of Canada (BoC) today, and the Reserve Bank of Australia (RBA) on 7 June. Economists at Credit Suisse think AUD/CAD shorts remain an attractive expression of relative monetary policy dynamics in the commodity FX space.
Scope for AUD/CAD to break below Jan lows of 0.8950
“We see value in crosses, specifically in AUD/CAD downside, as we remain sceptical the RBA is poised to deliver on the market’s priced-in policy expectations.”
“We believe there is scope for AUD/CAD to break below Jan lows of 0.8950.”
See – BoC Preview: Forecasts from six major banks, hawkish hike
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