The RBNZ was dovish in their economic assesment and IMO used it to communicate their 100% commitment to a OCR cut. Key drivers of this view were quotes such as "futher policy easing will be required, and monetary policy will remain accomodative.", "NZD currency strength makes it difficult to hit target inflation" and "NZD exachange rate is too high stronger NZD...
Also as additional technicals to support the short NZD$ view: 1. On the daily, H1 and weekly NU currently Trades (and at 0.73) close/ at to its +2 standard deviation lines, these are highly resistive. - Assuming NU trades mean reverting +2SD means there is a 95% chance of a price reversal/ 95% of all prices should be below the +2SD channel lines (e.g. NU...
Short NZDUSD is in my top 2 FX Trades for several reasons: 1. NZD is considered the riskiest G10 currency cross, so NZD trades weaker in risk-off markets, or when equities/ SPX trade lower (you can see the high correlation with SPX at the bottom of the graph). - With Brexit occurring last week, global risk has increased, this is especially the case for NZD due...