Thoughts on NZDCAD after recent BOC talk
Been looking at $NZDCAD lately, specifically how it reacted around the 0.82281 level. It’s been pretty range-bound for a bit, but the recent BOC hawkishness has me wondering if we're going to see a more decisive push. You'd think with the BOC sounding more resolute on inflation, CAD would find some stronger footing, yet we're still hovering around this area. My watchlist currently has me looking for a clear break lower on $NZDCAD, maybe towards the 0.82091 support area if that BOC sentiment truly takes hold and isn't just talk. If we see $USDX strengthen more, that could also throw a wrench in things, potentially pulling NZD lower against the board. What are others thinking here? Are you anticipating a stronger CAD or do you see other factors at play that could keep it propped up?
It's a good observation, the market seems to be digesting the BOC's hawkish tone a bit differently than one might expect, especially against the NZD. I'm curious if you've looked at the retail sentiment data for CAD crosses; sometimes that can offer a contrasting view to the fundamental headlines.