CAD remains appealing vs its commodity bloc - Westpac

Richard Franulovich, Research Analyst at Westpac, suggests that the CAD remains appealing vs its commodity bloc brethren AUD and NZD, the latter hamstrung by heightened RBA and RBNZ easing risk, and related to that, a much lower inflation trajectory in both Australia and NZ.

Key Quotes

“The supply side adjustment in energy markets appears to be much more advanced than in iron ore too, the latter showing comparatively little if any meaningful rationalisation. AUD/ CAD a sell into 0.96, NZD/CAD a sell into 0.89, targeting 3-4% downside into mid-year. Markets should look through any short term growth impacts from the Fort McMurray fire.”