Core CPI came out better than expected, which should prompt the RBNZ to be less dovish at the next meeting in their quest to hike inflation
This prompts us to long NZD. As for the US dollar, we are still seeing a mixed Fed in terms of the December rate hike, and it could be expected to weaken in the long run.
The minutes from the RBA meeting confirmed that the door was open for further easing. We are likely to see some downside in the coming weeks.
Presenting us a good swing trade, although NZD has continued weakness which could hinder this trade. Other than that it has formed a nice inverted hammer on the Daily chart ...
If US GDP (and other data) beats estimates, and hawkish comments
from Yellen speech. We shall have USD strength across the board.
Have two trades.
Set stops below 1.3014,
and targets at 1.10955 for an ambitious target.
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