AUD/CAD: Downside is an appropriate expression of diverging monetary policy stories – Credit Suisse

The upcoming days feature two key central bank rate decisions: the Bank of Canada (BoC) today, and the Reserve Bank of Australia (RBA) on 7 June. Economists at Credit Suisse think AUD/CAD shorts remain an attractive expression of relative monetary policy dynamics in the commodity FX space. 

Scope for AUD/CAD to break below Jan lows of 0.8950

“We see value in crosses, specifically in AUD/CAD downside, as we remain sceptical the RBA is poised to deliver on the market’s priced-in policy expectations.”

“We believe there is scope for AUD/CAD to break below Jan lows of 0.8950.”

See – BoC Preview: Forecasts from six major banks, hawkish hike