Time to price in market events, NZD weakness
New Zealand Dollar
The New Zealand Dollar fell sharply after the rate decision from the Reserve Bank of New Zealand. There were no changes to monetary policy but they did make clear that the next move would be a rate cut. Market participants jumped on this open and clear language to capitalize and price in what would most likely happen in the near future. Trading the NZD could be done through a number of vehicles including the Japanese Yen, Swiss Franc and Pound Sterling where the volatility is present and the sentiment is neutral.
Currently NZDJPY has broken below the 200EMA and solidified there. The Yen will soak up any weakness the Kiwi may show in the time to come before the next interest rate decision from the RBNZ. A short trade could be enacted from the current price with a stop loss at the level of 75.58 and a take profit at 74.00
The New Zealand Dollar fell sharply after the rate decision from the Reserve Bank of New Zealand. There were no changes to monetary policy but they did make clear that the next move would be a rate cut. Market participants jumped on this open and clear language to capitalize and price in what would most likely happen in the near future. Trading the NZD could be done through a number of vehicles including the Japanese Yen, Swiss Franc and Pound Sterling where the volatility is present and the sentiment is neutral.
Currently NZDJPY has broken below the 200EMA and solidified there. The Yen will soak up any weakness the Kiwi may show in the time to come before the next interest rate decision from the RBNZ. A short trade could be enacted from the current price with a stop loss at the level of 75.58 and a take profit at 74.00
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