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NZD/USD 04.27.2016 Big Trade – LIVE
NZD/USD Big Trade Orders
Sell NZD/USD at 0.6850 or better (we entered at 0.6850 market)
Stop at 0.7050
Set Target in case we have big moves on RBNZ at 0.6780
In a few hours the Reserve Bank of New Zealand will delivers its own monetary policy decision. Investors took the New Zealand dollar lower ahead of the meeting on the fear that the central bank will signal plans to lower interest rates in June or worse -- surprise with another interest rate cut. Last month’s reduction was completely unexpected and sent the New Zealand dollar sharply lower because not only did the RBNZ ease but they also said that further stimulus may be required. The chance of additional cuts this year is high after last night’s surprisingly weak trade numbers (the surplus shrank to 117M from 367M), unexpected decline in Australian consumer prices and the recent slowdown in service and manufacturing activity. While back-to-back rate cuts may not be necessary because Q1 CPI growth in New Zealand ticked up according to the table below, but there’s certainly been enough weakness to warrant a dovish bias and possibly even justify a surprise cut. Either way, we expect the outcome of tonight’s RBNZ meeting to be bearish for the New Zealand dollar and see it taking the currency pair to the April lows near 0.6760.