TD on the commodity currency trade
TD recommends buying AUD/CAD with a target of 0.9520 and a stop at 0.9230 in its weekly FX pick.
"We think CAD might have some ground to give up on the non-trivial risk of a yield-curve control adoption. At the very least, we expect the BOC to reiterate a cautious tone. We like the risk/reward of an AUD/CAD long as our trade of the week as the Australian dollar tracks slightly cheaper on our dashboard."
The Bank of Canada decision is Wednesday at 1400 GMT.