Last week we tried to take a Long position on NZDUSD
, our goal is to speculate on potential "non-event" of September 21 (Announcement RBNZ interest rates). New Zealand's economy has been more balanced since their last meeting. We've seen both improvements and deterioration with dairy prices rising and GDP growth accelerating. Manufacturing activity slowed but only modestly. Recent comments from RBNZ officials have been optimistic but when the central bank
last met, they said they "will" ease further. The central bank
lowered rates by 25bp in August, which was less than investors anticipated. Our opinion is a "No rate cut is expected this coming week".
Thanks for your support and trade with care!