USD/CAD: sell on strength (still) – Westpac

In view of strategists at Westpac, the perspective for the pair remains a ‘sell on rallies’ in the near term.

Key Quotes

“USD/CAD admittedly looks like tis building a solid beach-head above 1.30 but still favour selling strength. Resilient oil prices fairly value USD/CAD nearer 1.25”.

“The less adventurous may went to sell AUD/CAD or NZD/CAD instead, the substantial outperformance of oil vis-a-vis both iron ore and dairy suggests a relatively less dire terms of trade backdrop for Canada vs. Australia or NZ”.

“While USD/CAD remains in an uptrend since early May, trend strength has not really picked up. Momentum fading as well”.