Week Ahead: AUD Into RBA, CAD Into BoC, USD Into NFP – Credit Agricole

Credit Agricole CIB FX Strategy Research discusses the FX Market outlook into the coming week, noticing that markets will focus on the release of the US non-farm payroll numbers, along with the policy meetings of the RBA and BoC.

On the NFP (Fri), CACIB thinks that a positive surprise in wage recovery next Friday might support USD, mainly against the JPY, CHF, AUD and NZD.

On the RBA (Tue), CACIB notes that central bank's bias to stay on hold for a long time is clear, so the impact of next week’s board meeting will be overshadowed by data releases and any movement in US rates.

On the BoC (Wed), CACIB thinks that the central bank should play for time next week as it waits for more data.

"…We believe the next hike will be in January..In our view, tightening is under-priced and we remain tactically short USD/CAD*," CACIB argues.

Source: Credit Agricole CIB ResearchOriginal Article