Watching the CAD and potential shifts in RBNZ/BoC divergence
Been spending some time this week looking at the $NZDCAD pair and the recent move lower. We're currently sitting around 0.82599, and it feels like the market is starting to price in a more hawkish tone from the RBNZ compared to the BoC.
While the CAD has shown some resilience, especially with oil prices hovering where they are, I'm curious if we're going to see a sustained push in the NZD's favor. The recent CPI data out of NZ wasn't exactly screaming for aggressive hikes, but the commentary from the RBNZ has been consistently firm. On the other hand, the BoC has been a bit more nuanced, giving themselves room. It's a tricky one to call, but I'm watching for any further divergence in central bank rhetoric to see if this move has legs or if it's just a temporary correction. Definitely on my radar for potential opportunities.
It's a good point about the potential RBNZ hawkishness. I'm wondering how much of that is already baked in, and if the BoC's recent rhetoric might temper the divergence if they signal any further hesitancy.