After the Bank of Canada surprised markets by raising interest rates twice earlier this year, one can’t help but compare the Australian dollar to its commodity currency cousin, the Canadian dollar. Since last June, USD/CAD tumbled from an area above 1.35 down to around 1.25 currently. As foreign exchange markets try and guess which central bank will be the next to raise interest rates, the Reserv…

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In recent times, the Reserve Bank of Australia has done a commendable job of lowering the market’s expectations for its monetary policy meetings. Despite excitement from other central banks such as Canada, the RBA has consistently brushed off speculation that a change of stance is warranted. Markets are only pricing in a rate hike in May 2018, and the consensus expects the RBA to hold rates at 1.…

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