Forex Flash: AUD/CAD might jump to higher levels since 1984 soon – TD Securities

FXstreet.com (Barcelona) - TD Securities analysts believe momentum and fundamental factors could push the AUD/CAD even higher near term: “We believe the 1.10 mark could be broken soon, propelling AUD/CAD to the highest level since 1984, hence the recent correction could be an opportunity to re-enter this space”, wrote analyst Alvin Pontoh. “Since the start of 2013, AUDCAD has appreciated from 1.03 to 1.07, matching the peak of a year ago, turning the focus squarely on 1.10, a level last breached in early 1997”, he added, pointing to the the pair’s underperformance due to disappointing Canadian economic data since the start of the year. “The BoC has subsequently dialed back its hawkish bias and the markets have responded by delaying expectations of the first tightening (TD in particular from Q1’14 to Q4). In contrast, markets are moving towards the view that the Australian cash rate has troughed at 3%, as improvement in the global backdrop has coincided with (mostly) upside domestic data surprises”, Pontoh concluded.