Thoughts on CAD's resilience despite oil fluctuations and its impact on NZDCAD
Been watching CAD lately and it's interesting how it's holding up relatively well even with the choppy oil prices. You'd expect a bit more weakness, especially with some of the recent economic data out of Canada being a mixed bag. It makes me wonder if there's a stronger underlying bid for CAD than I'm giving it credit for, perhaps linked to a perception of the BoC's stance or maybe just general sentiment towards North American currencies.
This makes me reconsider my outlook on pairs like $NZDCAD. We're seeing $NZDCAD up to 0.82454 today, which feels like it's pushing a bit against that perceived CAD strength. I'm curious if others are seeing this same resilience in CAD and how they're interpreting it. It's making me lean towards a more cautious approach on adding to long NZDCAD, perhaps waiting for a clearer catalyst or a technical breakdown if CAD truly starts to show some cracks.
That's a really good point about CAD's resilience. I was also expecting more downside given the oil swings. Do you think it could be some of the safe-haven flows we've seen, or maybe a sign that the market believes the BoC will stay hawkish longer?