Sell NZD/CAD for target of 0.9315 - Westpac

Analysts at Westpac are recommending to sell NZD/CAD with the following parameters:

“Entry: Sell 50% at 0.9515, sell 50% at 0.9545, Stop: 0.9615*, Target: 0.9315”

Key quotes

“Rationale: 

• Comments from Governor Poloz and fellow BoC officials have underscored their shift from an easing bias in front of their 12 July policy meeting  
• Oil has formed a base over the past two weeks from which a trading range is developing with continued upside potential 
• A lack of top tier NZ data until 2Q CPI (18th July) leaves NZD vulnerable to relative rates and positioning risk
• The clear out of short-dated receiver trades saw a marked underperformance of NZ rates which could now see sound retracements 
• Risks for this week's Canadian employment and PMI data remain to the upside”