Bearish on New Zealand dollar
The Reserve Bank of New Zealand cut interest rates for the first time in 5 years on 24 July 08. Reserve Bank of New Zealand reported that economic activity is likely to remain weak over the remainder of 2008.
Retail sales had fallen by the most in 4 years and consumer confidence hitting record lows, the New Zealand dollar has weakened to the lowest level in 6 months.
RBNZ Governor Bollard promising more rate cuts and the futures curve pricing such action, the New Zealand central bank has become the most aggressively dovish policy maker of the G10.
Further weakness is expected in NZD and for it to fall below 67 cents against the US dollar before end of September.
My proprietory trading system had signal SELL for NZDUSD.
Shorted 10,000 NZDUSD at 0.6962
Stop level at 0.7080
Target level at 0.6766
Chart:
Forex & Binary Trading: Bearish on New Zealand dollar