Kiwi Rate Cut

Morning Report: 06.30 London

• New Zealand opted to cut rates to 2.25% last night, causing the NZD/USD crash lower.

• By contrast, the AUD/USD is holding up well, with the AUD/JPY following suit.

• The US Dollar remains range bound after last week’s losses, while the USD/JPY nudged slightly higher.

• The Yen pairs are generally performing well, with the GBP/JPY and EUR/JPY climbing higher this morning.

•  Commodities are back on the rise with oil prices creeping above $40 again.

Coming up today:

• Coming up today we have the ECB bid rate at 12.45. The ECB press conference follows at 13.30. No significant change is expected.

• Canadian NHPI is released at 13.30.

Trade Idea:

• Now that oil prices are making something of a sustained recovery, the USD/CAD is worth a look.

• With the US Dollar slipping into neutral mode, the Canadian Dollar has enjoyed the rebound in oil prices, driving the USD/CAD lower.
                      

                             


A good way to play this is a LOWER trade predicting that the USD/CAD will close below 1.3200 in 14 days for a potential return of 132%.

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