NZDCAD Selling OffThe NZDCAD breakdown through .8553 has hit its first target at .8475. With oil prices rallying again recently, CAD has seen better demand. This has also come amidst recent hawkishness from the BOC, which raised rate by .5% last week, creating a strong backdrop for a higher Canadian Dollar. With both MACD and RSI bearish here, and with the retail market firmly bullish, there is plenty of room for the pair to continue down to the next target at .8351.Keep An Eye OnCanada and New Zealand both see CPI releases this week. Given the recent trends, both readings are expected to improve. However, given the focus on stronger oil prices, CAD looks likely to receive the most lift from a firmer CPI print. Away from data, the focus will of course be on oil flows and general risk appetite. With oil prices deriving support from ongoing uncertainty around the conflict in Ukraine, CAD looks likely to remain supported near term. Indeed, recent reports highlight risks of intensifying violence near term, keeping the oil outlook skewed to the upside.
Source: Tickmill
