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29 Mar 2013
Forex Flash: TD Securities expects AUD/CAD to test 1.1000 in the next 1-3 months
FXstreet.com (San Francisco) - After peaking to 1-month high at 1.0715 on March 22nd, the AUD/CAD has been retracing toward the 1.0560 level where the pair remains trading in consolidation mode. The Cross is currently at 1.0585, just 10 pips above opening price.
But the TD Rates, FX & Commodities Research team expects the AUD/CAD to test 1.1000 in the next 1-3 months. "Beyond the next week or two, we think the odds favour a test of the key 1.10 level," TD Securities team affirms. "Our forecast envisages a peak of 1.12 in Q2 - a 28-year high - to be driven by divergent policy expectations: firming belief that the easing cycle is over in Australia by mid-year, against the BoC’s “lower for longer” in Canada.
TD Securities's AUD/CAD forecasts: Q2’13: 1.1170; Q3’13: 1.0600; Q4’13: 1.0400; Q1’14: 1.000; Q2’14: 0.9800.
But the TD Rates, FX & Commodities Research team expects the AUD/CAD to test 1.1000 in the next 1-3 months. "Beyond the next week or two, we think the odds favour a test of the key 1.10 level," TD Securities team affirms. "Our forecast envisages a peak of 1.12 in Q2 - a 28-year high - to be driven by divergent policy expectations: firming belief that the easing cycle is over in Australia by mid-year, against the BoC’s “lower for longer” in Canada.
TD Securities's AUD/CAD forecasts: Q2’13: 1.1170; Q3’13: 1.0600; Q4’13: 1.0400; Q1’14: 1.000; Q2’14: 0.9800.