Aug 10th 2016: Kiwi Flying Despite Expected Cut

• This morning, the NZD/USD is flying high, despite an expected rate cut to 2.00% tonight. The AUD/USD is travelling well in sympathy.

• These moves have largely been sparked by the ongoing retreat in the US dollar.

• The USD/JPY is following suit, with money flowing into the yen.

• Meanwhile, the British pound is bouncing back from yesterday’s disappointing manufacturing data.

• The euro is enjoying a weaker dollar, pushing the EUR/USD higher.

• Coming up today, we have US JOLTS job openings at 15.00, followed by crude oil inventories at 15.30.
• The RBNZ rate call is at 22.00, with a cut to 2.00% expected. The statement follows at 23.00.

Trade Idea: 

• The USD/JPY continues to retreat after a false flurry. Demand for the Greenback is increasing as the global appetite for other currencies (especially the yen) shows no signs of slowing, with interest hike expectations drifting further into the future.

• A good way to play this is a LOWER trade predicting that the USD/JPY closes below 101.00 in 21 days for a potential return of 130.9% 

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