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23 Mar 2016
USD/CAD could test 1.3500 – Westpac
Strategists at Westpac expect the pair could rebound to the 1.3500 area.
Key Quotes
“A multi-day low in USD/CAD surely cannot be far-off, oscillators suggesting USD/CAD is the most oversold in eight years and specs trimming their CAD shorts to the lightest in nine months”.
“Open to one last gasp lower toward key support near 1.2855 but at these levels would buy for a long term bounce back toward 1.35”.
“China hard landing risk was always overstated but the pendulum may have swung too far in the complacent direction, ditto for Fed tightening expectations, especially in light of steadily improving US activity and inflation trends”.
Key Quotes
“A multi-day low in USD/CAD surely cannot be far-off, oscillators suggesting USD/CAD is the most oversold in eight years and specs trimming their CAD shorts to the lightest in nine months”.
“Open to one last gasp lower toward key support near 1.2855 but at these levels would buy for a long term bounce back toward 1.35”.
“China hard landing risk was always overstated but the pendulum may have swung too far in the complacent direction, ditto for Fed tightening expectations, especially in light of steadily improving US activity and inflation trends”.