FX:NZDCAD New Zealand Dollar/Canadian Dollar
Rationale in the chart.
Yes, that's fine, I agree about the CAD, but the NZD has weakened recently and I'm not so sure, if we can still rely on its strength. Other than the sterling, which is still doing very well, it's the JPY and the CHF that became stronger than the kiwi so I have got my misgivings about this ccy.
Fair enough. But even if this cross drifts sideways (a slower NZD doesn't mean a stronger CAD, which is a mess at the moment), then the carry trade here - especially after the rate hike - could produce a decent return. The only major risk here as it stands today would be an about-face on the part of CAD. That seems unlikely to me. What do you think?