ja_mageia

NZD/USD: 0.6818 - 0.7083

AUD/NZD: 1.2243 - 1.2696 

Last Week: 

The theme for the week was continued recovery for the USD, that was helped along by continued declines in the price of commodities, especially Oil and Gold.The AUD/USD and NZD/USD came under continued selling pressure, as result of the commodity sell offs.  The AUD/NZD headed rapidly  lower as the NZD/USD found some support at previous lows of 0.6825, and the RBA announced that they would not wait for inflation to abate before cutting rates.  

What we did: 

We managed stay small short on the NZD/USD all the way down, and then bought the bounce back at 0.6830.Buying the extensions lower in the AUD/NZD for retracements had initially paid off, although the big decline on Thursday and Friday was somewhat unexpected.  

This Week:

A relatively light week on the news front this week, with the major event in this region likely to be the release of the RBA minutes for the August board meeting.  There’s been talk of the RBA being concerned about the potential for rate cuts not being passed on directly to consumers. We will have to wait for the minutes to see if there is any suggestion of an early 50bpt cut. 

What we will do: 

We intend to look to sell NZD/USD and AUD/USD on rallies, and look to play new ranges in the AUD/NZD once we believe they have been established.

We will also be looking to sell NZD/JPY and EUR/JPY on extended rallies, and will be looking at options strategies for taking advantage of a potential continued appreciation of the USD in the medium term.