NZD, AUD, CAD: TD Securities reveals its preferred trades

"We find that the CAD is rising more than the NZD and AUD. Our favorite trade is to sell the NZD/CAD. So sell all rallies on this pair.

Our short-term models point to a range within 0.85-0.88. So there still is room for a decline. Our models also suggest that the AUD/NZD could rise above, with 1.13 as a target.

From a macroeconomic standpoint, trade commerce, monetary policies and exchange rates lean towards a rise of the AUD/NZD in Q2. The surprise rate drop of the RBNZ reinforces our bullish view on the pair.

We also like to sell the AUD/CAD", says TD Securities.