There are a lot of reasons Kiwi would continue to drop steeply next week.
- Aussie rejected downtrend and begin its gain vs Usdollar , last week, we saw a sharp jump of Aussie, and this provides catalyst for AUDNZD to rally. Next week, the main focus of Aussie would be RBA Interest rate decision, Australia GDP, China PMI. With recent positive economic data of Australia, I believe it will support for Aussie uptrend and RBA neutral stance. Moreover, China economy begins to found the light at the end of the tunnel. In brief, AUDNZD would reach new high, retrace after long term falling down, and this would weight on NZD, drag Kiwi to fall down vs greenback.
- No major New Zealand economic data are released next week, so traders will focus on US economic data to pricing. Next week will be a busy week for forex traders, Non-Farm Payroll on Friday, ISM Manufacturing + Non-Manufacturing PMI , Factory Orders absolutely affect strongly on the move of USdollar . I continue firmly to believe US economy is expanding in Q2, and this will transfer to the data. Positive data for USDollar
. - Finally, look at on the chart, Kiwi crossed through very thick Kumo cloud, this is a strong signal for Kiwi.
- I SHORT Kiwi to 0.8420
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