AUD/CAD Short-Sighted Bull Rally

28 ott 2020

Let's think about this. The Australian Dollar is considered a risk-on asset who has high trade tensions with its biggest trade partner. Risk-on Equities are falling, so why shouldn't the AUD fall too. Well, the market is short-sightedly buying over the good CPI numbers which are front-loaded. I expect to see the AUD fall more in line with other risk assets. Of course, this rally is partially due to CAD weakness as well (due to oil), but the CAD is a safer asset than the AUD. Remember I am not your financial advisor.