USD/CAD targets 1.34/1.35 – Westpac

Strategists at Westpac have reiterated the pair could test the 1.34/1.35 band.

Key Quotes

“USD/CAD looks exceedingly cheap via-a-vis energy prices, the latter close to retracing about 1/2 its mid-Feb to mid-March gains while USD/CAD has barely bounced”.

“Upside USD/CAD targets should be modest though - 1.34/1.35 - hard landing China risks should remain dormant a while longer as policymakers there adopt a pro-growth stance while the Fed could be sidelined past June given Chair Yellen's dovish leaning and what is shaping up to be a sub-1% Q1 growth pace”.