USD/CAD: Multi-day Low in USD/CAD Cannot be Far-off - Westpac

USD/CAD: Multi-day Low in USD/CAD Cannot be Far-off - Westpac

According to Westpac, a multi-day low in USD/CAD cannot be far-off given the oversold nature of the oscillators.

Key Quotes

"Our long USD/CAD position was stopped out at 1.3030 on broad USD weakness on the cautious tone at last week's FOMC meeting."

"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."

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