The Canadian dollar is poised for a fall
The Australian and New Zealand dollars are near multi-year lows but their Canadian cousin has held strong amidst coronavirus fears.
Part of that is because economic data in Canada has held up relatively well and inflation is high. That's kept the Bank of Canada from shifting to a dovish bias like the RBA and RBNZ. With coronavirus and oil risks rising, that could change quickly.
If so, or if risk aversion continues to rise, then USD/CAD gains could quickly cascade. Looking at the chart, there are a series of highs from 1.3328 up to 1.3794 that could be broken in a spiraling run on stops.
In a dire situation on coronavirus, I think buying USD/CAD and selling CAD/JPY is one of the better trades out there.
