USD/CAD: cheap vs energy prices - Westpac

Analysts at Westpac explained that their model, macro and technical signals continue to recommend buying USD/CAD on weakness.

Key Quotes:

"Our order sits at 1.2840 with a stop at 1.2710. USD/CAD looks exceedingly cheap via-a-vis energy prices, the latter close to retracing about 1/2 its mid-Feb to mid-March gains while USD/CAD has barely bounced.

Upside USD/CAD targets should be modest though - 1.34/1.35 - hard landing China risks should remain dormant as policymakers there adopt a pro-growth stance while the Fed could be sidelined past June given Chair Yellen's dovish leaning and what is shaping up to be a sub-1% Q1 US growth pace."