My picks: Short NZD/USD at Market
Expertise: Fundamentals and Technicals
Average Time Frame of Trades: 2 - 10 Days
The New Zealand dollar lost nearly 2% against the greenback this week as investors moved out of higher-yielding assets, and as the OECD calls for the Reserve Bank of New Zealand to cut rates to 2.00%, expectations for lower borrowing costs is likely to weigh on the exchange rate as the economic outlook remains bleak. As a result, the shift in market sentiment paired with a weakening outlook for growth and inflation is expected to drag the NZD/USD lower over the near-term, and I will short the pair at market, and will place my target 0.5529, the 4/1 low.
