USD/CAD settled above the resistance at 1.2340 and is testing the next resistance level at 1.2380.
The Australian dollar has rallied a bit during the course of the week to break above the 0.75 handle, but it is obvious that we are facing a little bit of noise here.
“The CAD has accumulated a modest gain against a generally mixed to slightly softer USD this week. Underlying fundamental drivers remain positive for the CAD, as our fair value model highlights, but correlations with spot are weak, indicating that the CAD is not getting as much lift as we might expect from firm crude and wide, short-term yield spreads. However, a more nuanced view of fair value, which takes more account of the USD’s performance, still suggests there is some decent value in the C