Beware of RBNZ monetary policy meeting Mike,
While I don’t expect them cutting rates anytime soon, event risks should always be avoided at best. We can never be sure about the reaction its only a guessing game.
Besides oil, I want to add if you followed last few monetary policy statements you wouldn’t want to sell CAD. I’m no longer as bullish as I was as regards to USD. Lately theres been nothing but disappointing data one after another. I’ll be paying close attention how yoy GDP turns out tonight. CAD, NZD, GBP has already turned around on daily we shouldn’t take these turnarounds lightly I want to see how market will react to Fed meeting also.
And lets not get carried away with AUD strength just yet guys. I’ve read their last statement, upon reading the whole thing I wanted to sell AUD definitely not as optimistic as CAD, Steven still wants AUD lower and the non mining sectors isn’t picking up anytime soon add up slowdown in Chinese property market , the recent AUD strength could be due to few factors ; 1.PBC easing, 2. there’s no apparent hint if RBA will cut rate furthermore, 3. well majors haven’t been competent enough, they’ve tried especially GBP despite election uncertainties but has anyone looked over at that GDP number that was disappointing I’m looking to sell pound against NZD once RBNZ is over with its policy meeting. To wrap things up in my view fundamentally we’re still in a big chaos. There’s no apparent strong currency. Its like everyones been trying to give it a shot except for yen and USD but keep falling short and that reflects the underlying fundamental reasonings.