Sell AUD/CAD with target at 1.0055 - Westpac

Analysts at Westpac offered a trade plan to sell AUD/CAD

Key Quotes:

Entry: Sell 100% at 1.0190, Stop: 1.0240, Target: 1.0055

Rationale:

• Softer AU CPI adds to softer commodity export prices and weighs on AUD, limiting any rebounds
• RBA policy remaining on hold for a prolonged period is also underscored by low core inflation
• Recent CAD weakness may turn as Trump’s focus turns from tinkering with trade tariffs to focusing on tax reforms without Border Tax Adjustment
• Oil may stabilise as OPEC arrange to meet to discuss extending production cuts