Tactical divergence seen between AUD and CAD

The Australian and Canadian dollars fell spectacularly against the US dollar in H2 14. Bothcurrencies are highly sensitive to commodity prices and have been severely hit by the oil pricecollapse. 

Societe Generale notes on Friday as follows:

• Now that oil prices are stabilising and central bank activism is taking centre stage again, rates are likely to again become a key factor driving forthcoming FX moves. 
  
  
• The BoC and the RBA surprised the market by cutting rates by 25bp in January and Februaryand staying on hold in March, but it seems that their respective policies may now diverge.