Forex Flash: AUD/CAD may reach 1.07, momentum to be short-lived - Westpac

AUD/CAD momentum could extend to near 1.07 although is likely to be short-lived, says Sean Callow, currency strategist at Westpac. The rise, as Sean explains, comes after "the Bank of Canada’s lack of urgency to tighten policy contrasted with a sharp reduction in market pricing for RBA easing to help produce one year highs above 1.06." However, Sean notes that "CAD short positioning extreme and RBA pricing more likely to move towards -25bp than zero should see AUD/CAD slip back to 1.0400 multi-week" the analyst adds.