Goldman Sachs have had this view for a while, reiterating it.

Our recommendation to short AUD/CAD is intended to benefit from divergence between the RBA and BoC

  • we see the RBA on hold until late 2023 but expect the BoC to hike this coming January
  • as well as from divergence in the countries' export prices, our commodity strategists forecast upside to crude oil but anticipate a sustained period of weakness for iron ore
  • In addition to these bottom-up considerations, we also think this trade is favourably exposed to certain top-down factors currently driving macro markets

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