CAD consolidates after USD's failure to holds 1.44 test - Scotiabank

The Canadian Dollar (CAD) is little changed on the session, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

USD can return back to the low/mid-1.42s

"BoC Governor Macklem's remarks on tariffs and monetary policy yesterday underscored the Bank's sensitivity to the inflationary consequences of trade wars. He noted that the hot February CPI report had got policymakers' attention but their outlook had not fundamentally changed. Market expectations for policy moves were unchanged around the comments. Swaps reflect around 80% probability of a 25bps cut by June." 

"The USD's failed push higher yesterday should put an effective cap on funds in the short run at least. Price action indicates a clear rejection of yesterday's test of 1.44 and the USD closed the session back under resistance around 1.4340/50. This may set the market up for another push on trend support at 1.4300/10, with a break below here likely to drive the USD back to the low/mid-1.42s"