Forex Flash: AUD/CAD could see slip on RBA – Westpac

FXstreet.com (Barcelona) - The Bank of Canada’s lack of urgency to tighten policy has contrasted with a sharp reduction in market pricing for RBA easing to help produce one year highs above 1.0600. According to Global FX Strategist Sean Callow at Westpac, “Momentum could extend to near the 1.0700 region, but this is likely to be short-lived, with CAD short positioning extreme and RBA pricing more likely to move towards -25bp than zero. This should see the AUD/CAD slip back to 1.0400 multi-week.”

Moreover, the AUD/CAD is of course trading well clear of major moving averages after the recent bounce. The February 2012 highs around 1.0780 are obviously very strong resistance should the rally continue.