0315 GMT [Dow Jones] AUD/CAD has "limited downside," and the recent sell off is "transitory," says RBC Capital Markets Senior Currency Strategist Sue Trinh. She continues to forecast the pair at 1.06 at end-2014, and to hold above parity for much of 2015. "There is a widening divergence in relative bond flows and the onus remains on CAD to make the requisite adjustment, particularly if risk appetite remains elevated," says Trinh. "As the global recovery has become relatively more secure, demand for both Australia's and Canada's safe haven bonds has fallen," says Trinh. However, "AUD bonds have the mitigating allure of relative yield and being relatively cheaper." The pair is at 1.0068. (rebecca.howard@wsj.com; Twitter: @FarroHoward)
(END) Dow Jones Newswires
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May 22, 2014 23:15 ET (03:15 GMT)
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