There was no let up on bearish Kiwi sentiment this week, and with the market far from my entry orders and the weekend quickly coming up, it’s time to step away for now.
Original Trade Idea:Forex Trade Idea: NZD/CAD Downtrend
Not much going on in the chart above other that more Kiwi selling, likely on the weaker-than-expected read on the New Zealand GDP read, which supports potential rate cuts from the RBNZ. We also got another negative number from the Global Dairy Trade price index (dairy is one of the largest New Zealand export products). Overall, the pair was dominated by Kiwi news with the lack of Canadian data this week. We do have have Canadian CPI and Retail Sales data coming up today, but with the weekend quickly approaching (and the pair trading over 300 pips below my entry), I’m going to step away from this pair for now by closing my open orders to short at .8800. No trade.
In hindsight, this is one of those trades where I should have taken my first position at market, especially with a top tier catalyst like the surprise RBNZ rate cut setting the mood for the Kiwi last week. Can’t change that now, but with the data still supporting more potential rate cuts from the RBNZ, this move may not be over. Once the weekend is done, I will be looking for a way to play the downtrend, so until then, have a great weekend and stay tuned!