TD Research maintains a bearish NZD/CAD exposure in spot targeting a move towards 0.88.

"US equities are trading at around a 4% discount to their DM peers. That's an important consideration given that the US growth outlook is comfortably running ahead of the G10 majors now, especially in Europe. It highlights that G10 Reserve currencies are the most expensive now: EUR, CHF, and GBP all trade at 1-3% premiums.

"The Dollar Bloc sits close to fair value, but that misrepresents the large NZD premium, which sits at 1.5%. It's a key feature of our short NZDCAD trade idea," TD adds.