A win is a win! I decided to hop out of my position ahead of the RBNZ statement because I had this eerie feeling that it might be a bummer.
Long NZD/CAD Trade
You see, I was actually planning on staying in this long position for quite some time because 1) I liked the positive carry and 2) the pair’s uptrend has been hella strong.
However, it seemed that Kiwi bulls just couldn’t charge past the latest swing high, and I figured that profit-taking ahead of the RBNZ decision or during the actual event could drag this pair back down.
Turns out my gut was spot on, as price took a sharp dive when the RBNZ decided to downgrade its growth forecast for Q1 and stuck to its cautious bias. Heck, RBNZ head Spencer and his fellow policymakers don’t seem inclined to hike rates anytime soon!
Meanwhile, the Loonie has been somewhat resilient despite NAFTA jitters and weaker crude oil prices. Canadian fundamentals seem stable after all, and the BOC has retained its rate hike bias.
So my gains on this supposedly swing position weren’t that large, but I’m still happy with how I managed this one.
P/L: +150 pips / +0.5%
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.