Boris and Kathy's FX Blog www.bktraderfx.com
10/31/2006
Today's Email Alerts:
Alert #2
Stopped out of AUD/NZD
The market didnt even give us a chance to wait for Australian data. Comments from NZ Finance Minister about the stubbornly strong Kiwi sent the currency lower and AUD/NZD higher, but only for minutes before it reversed - the spike lasted too short for us to react.
Indeed, the kiwi is stubbornly strong and it has little reason to be. The flush lower down to 1.1500 and the corresponding pop could have been related to pre-Sydney open flows. Seems like the big boys are playing against us. It happens. We'll be sidelined until we find a better opportunity.
Alert #1 Long AUD/NZD
We are very bullish on the Australian dollar given the recent slew of positive data including PPI, CPI, and leading indicators. The economy is doing very well and the RBA is on track to raise interest rates by another 25bp to 6.25 percent. Retail sales and trade balance are due for release tonight and we expect another solid print.
On the flip side, New Zealand's economy has not been performing so well. The RBNZ made it very obvious recently that they have no plans to raise interest rates. This makes AUD/NZD a very attractive buy. Technically we had a breakout of a massive ascending triangle and are buying a retracement of the move.
We are going long AUD/NZD here at 1.1558 with a stop at 1.1520. The first target is 1.1590, move stop to breakeven on the second half of the position when that level is reached. Second target is 1.1660.
Alert #2
Stopped out of AUD/NZD
The market didnt even give us a chance to wait for Australian data. Comments from NZ Finance Minister about the stubbornly strong Kiwi sent the currency lower and AUD/NZD higher, but only for minutes before it reversed - the spike lasted too short for us to react.
Indeed, the kiwi is stubbornly strong and it has little reason to be. The flush lower down to 1.1500 and the corresponding pop could have been related to pre-Sydney open flows. Seems like the big boys are playing against us. It happens. We'll be sidelined until we find a better opportunity.
Alert #1 Long AUD/NZD
We are very bullish on the Australian dollar given the recent slew of positive data including PPI, CPI, and leading indicators. The economy is doing very well and the RBA is on track to raise interest rates by another 25bp to 6.25 percent. Retail sales and trade balance are due for release tonight and we expect another solid print.
On the flip side, New Zealand's economy has not been performing so well. The RBNZ made it very obvious recently that they have no plans to raise interest rates. This makes AUD/NZD a very attractive buy. Technically we had a breakout of a massive ascending triangle and are buying a retracement of the move.
We are going long AUD/NZD here at 1.1558 with a stop at 1.1520. The first target is 1.1590, move stop to breakeven on the second half of the position when that level is reached. Second target is 1.1660.
posted by BKTrader # 10/31/2006 06:20:00 PM 
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