Economists at HSBC think both AUD and CAD are likely to consolidate in the near term, before strengthening over the longer term.

AUD and CAD: Consolidate before strengthening

“We think that the AUD and CAD are likely to move mostly sideways over the near term; with the focus remaining on US data, and how it could shape the 25 bps vs 50 bps debate for the 21-22 March Federal Open Markets Committee (FOMC) meeting.”

“Over the longer term when some of the uncertainties around the Fed, the US economy’s landing, and China’s recovery subside, the AUD and CAD are likely to strengthen against the USD.”