J.P.Morgan Go Short AUD/CAD

J.P.Morgan recommend going short AUD/CAD at CAD0.9350, with a stop-loss at CAD0.9537. They note that "relative central bank policy is re-emerging as a tradable theme. The RBA is now moving towards additional QE, removing the relative policy support AUD previously enjoyed. Other issues for AUD are the slight tweak in CNY FX policy and the recent escalation in the AU-China trade spat. We sell AUD/CAD to isolate AUD-specific driver from global risk trends. CAD has traded relatively firmly since the end of the summer, outperforming the rest of high-beta G10 over that period. We expect a similar degree of stability heading into the U.S. election given a lack of cyclical differentiation factors in Canada (the rise in COVID-19 rates is cause for concern, but not distinguishably worse than other parts of the world)."