Today's Trade: Thursday 31 October

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
After the RBNZ reiterated that interest rates will likely be raised next year and the intervention of the Chinese central bank in the money markets, we can expect strength in the New Zealand dollar and Australian dollar today. Look for buying opportunities on the NZD/USD in particular.
 
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Red Herring

Corporal
Messages
388
Hello Davis

JPY is also very strong today. I am not finding the reason. Do you know why or where I can get it why JPY is so strong? I am on the right side this time: selling AUDJPY
 

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
Thanks Jarrat another piece of gem :) are you planing for long term .. any target ?
Hey Jyotiprakash,

Well the RBNZ have stated clearly that rates are going up next year, so if this remains the case money will slowly flow into the NZD (Amongst all of these risk off events we have seen lately) As a medium term target I would be looking for the pair to get back to the old highs of around 0.8400's - 0.8500's.

Obviously the bank will try and talk it down, and risks to the Aussie economy will also weigh on the NZD but these should just be short term pull backs, unless anything fundamental changes.

J
 
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Jarratt Davis

Special Consultant to the FPA
Messages
1,495
Hello Davis

JPY is also very strong today. I am not finding the reason. Do you know why or where I can get it why JPY is so strong? I am on the right side this time: selling AUDJPY
Hey RedHerring,

Friday's strength in yen was mainly due to a risk off sentiment, after the disappointing CPI data from Europe and the markets sudden fear of a EU rate cut. The Asian / Australasian currencies are prone to strength right now due to good economic performance in China and Australia.

I definitely recommend Ransquawk for real time news .... They actually have an analyst chat feature, in which you can ask the analysts for the reasons behind any moves that are happening and they will explain them. Generally If I am short biased and the price rallies, for no real reason, I will hold my position and have confidence. These spikes are generally stop hunting or simply profit taking that otherwise may squeeze you out of your trades :)

On the other hand, if something big has happened to change the tone, then you can get it it quickly and make a decision about exiting your trade etc...

I find that service invaluable personally!

J
 
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