Apologies for my silence today and if I haven’t replied to emails or DTs, the dreaded flu has hit me for six 🙁
The market remains cautiously bullish on the USD but I’m sticking to the tried and trusted policy of buying GBP, AUD, CAD and NZD whilst selling the USD, JPY and EUR. Don’t ask me which pairs yet, I’ll tell you when I know 🙂
- USD/CAD: The small matter of a 25 year losing streak in the CAD is now confined to the annals of history and hopefully I’ve now started the 25 year winning streak 🙂 I caught the move from 1.10 down to 1.06 and I’m looking to repeat the dose. The short-term trend is bullish but I think the next move lower will be a very nasty one indeed so I’m looking to sell any 60/80 pip rallies from here and start building a short position.
- NZD/USD: Dipped sharply after the RBNZ and Fonterra. The rates in NZ are still much higher than elsewhere and the glut of milk powder in China is a temporary phenomenon. Once the market gets past this, I think we will see NZD demand return in spades. It’s important to keep a close eye on AUD/NZD; if this cross fails to break above 1.11/1.12 then the NZD strength will only be increased. The level I’m watching for in NZD/USD is around .8400.