It looks like off-shore sellers, probably Japanese, are behind the fall in the NZD over the last hour or so. None of the local banks seem to know what’s going on and seeing as the selling started around the time of the Tokyo open, this suggests that the selling is coming from that direction.

There are also likely to be weak trailing stops below .8715 hourly lows and the market could well be chasing after them.

One professional NZD trader told me this morning that he prefers the short side intraday and it’s usually very worthwhile listening closely to professional traders who make a living trading a specific market.