RBNZ main risk event this morning
The recent downtrend in the NZD has been very strong indeed and despite the upcoming RBNZ meeting, there has been little in the way of a decent bounce. So either the market is playing with trailing stops or the market isn’t as short as we are led to believe.
Most local analysts have been saying that the general market has become too dovish re the RBNZ whereas the liklihood is that we get a very steady hand and very steady language (with general election next week and they won’t want to influence politics).
If you want to be short NZD, then buying AUD/NZD dips seems like a safer play to me. If you want to be long NZD and fancy some volatility, then playing against the GBP or JPY should guarantee some heart palpitations.
Good luck 🙂