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"We now expect more aggressive policy easing from Beijing, such as lowering reserve ratios, cutting interest rates and increasing fiscal stimulus. We could see the second quarter being the bottom if they do all those things supporting the Aussie and kiwi."
- A&NZ Banking Group Ltd. (based on Bloomberg)
Pair's Outlook
USD/CAD continued the rally today, reaching a 2-month high at 1.0298 (also upper resistance line; R1 Weekly), paving the way to 1.0383 as the next target for bulls. If the bearish correction occurs, AUD/USD could retrace to 1.0165 (initial support line; R2 Monthly). As the pair is trading above 200-da ma, the bullish trend is prone to stay strong in the short term.
Traders' Sentiment
The currency couple is favored by the bearish investors with 60% of short positions, while within 100-pip distance, bullish traders take the lead (54%) as the majority of market participants expect the bullish trend of the pair to continue.
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