We expect CAD to outperform – Wells Fargo
FXstreet.com (Córdoba) - A weak US Dollar and the statement of the Bank of Canada pushed USD/CAD to the downside and currently trades below 0.9500. "While rates were left unchanged as expected, the statement arguably hinted at a shift in a more hawkish direction, suggesting the Bank of Canada could resume its interest rate tightening soon. This contrasts with today's minutes from the Reserve Bank of Australia that highlighted a switch to a more neutral stance," wrote Vassili Serebriakov, Currency Strategist at Wells Fargo on the daily report.
Vassili pointed out that they expect the Loonie to outperform in the coming months "and see scope for a retest of its 2007 highs against the US dollar."
Forex: AUD/USD teases 1.0700 resistance
FXstreet.com (Barcelona) - The AUD/USD today has been steadily recovering from yesterday´s low of 1.0560, reaching just underneath the technical resistance in 1.0700 despite being unable to break above so far. The pair currently trades consolidated around 1.0680 ahead of the North American session which should bring some further direction.
The Kshitij Consultancy Services team informs: "Aussie has risen above the 55-DMA (1.0649) and 21-DMA (1.0654) Resistances. A test of 1.0700 looks likley in the coming sessions and a strong break above 1.0700 would take the pair further up towards 1.0780. While 1.0700 holds, we might see a dip to 1.0600 once again."
They add: "Overall the pair is exepected to retain its 1.0500-800 sideways range and we will have to wait for a breakout of this range to get clear idea on the further direction of move."
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