Firstly we have the RBNZ inflation expectations later this afternoon and later today we have the much-watched dairy auction which is so important for the NZ export industry.
The NZD market is trading with a bearish bias at the moment and the really big NZD support levels are still at .8400 in NZD/USD and 1.1060 in AUD/NZD.
I’m happy to stick with my long NZD/USD trade for now. One of the agriculture analysts that I like to follow is expecting dairy prices to stabilise and perhaps even increase a bit, given the reducing stockpiles in China. That said, if NZD/USD prices break significantly below .8400 I’ll most likely look to exit the strategy. Let’s deal with that if/when it happens.