I Bought More CAD When Bank Of Canada Pushed It Down
|Bank Of Canada signaled caution while kept rate unchanged which was exactly the same action they did in the last meeting. Market sold off CAD because the anticipation for hawkish statement had not happened. Yet, this was a typical reaction which offered a good opportunity to buy more CAD as the underlying fundamental strength for CAD is still going strong.
AUD suffered another blow today with a miss on the GDP q/q last Asian Session, to a risk-off sentiment today throughout the London and New York session, only to have another miss on the Trade Balance data. Do you see the fundamental & sentimental bias?
I do, that’s why I took an AUD/CAD short today. With the market still expects a BOC rate hike in early 2018 while the expectation for RBA rate hike has pushed back to 2019, meanwhile, the oil market recovery has benefited both currencies and the risk sentiment will also be hedged out in these 2 commodity-linked currencies, this is a good safe bet.
USD/CAD also jumped up because of the BOC event today. We’re still safe for now with this trade, unless the NFP provides a good Average Hourly Earning, with the current expectation of 0.3% V.S 0% previously. That will our biggest risk to carry this trade through the event. Take a look at Today’s Video to see our other Live Trades.
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