Big Trade – Sell AUD/NZD – Cancelled

Big Trade – Sell AUD/NZD

Place order to Sell 1 Lot AUD/NZD at 1.0468

Place order to Sell 1 More Lot at 1.0570

Stop 1.0680

This week’s employment report triggered a sharp rally in the Australian dollar and we view this move as an opportunity to sell the currency at a higher level. Reason being that the last time we heard from the RBA, they were still talking about cutting interest rates and the market is pricing in one more 25bp rate cut this year. This view contrasts with that of the RBNZ who sounded more upbeat at this week’s meeting and less inclined to lower interest rates. The stability of dairy prices will also bode well for New Zealand’s economy whereas the low level of iron ore prices and recent decline in gold prices will be negative for Australia. The recent weakness in Chinese data also hurts Australia more than New Zealand

To take advantage of this view, we are laying out the following pending orders:

Place order to Sell 1 Lot AUD/NZD at 1.0468

Place order to Sell 1 More Lot at 1.0570

Stop 1.0680
Swing

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