Mar 10th 2016: Kiwi Rate Cut

• New Zealand opted to cut rates to 2.25% last night, causing the NZD/ USD crash lower.

• By contrast, the AUD/ USD is holding up well, with the AUD/ JPY following suit.

• The US dollar remains range bound after last week’s losses, while the USD/ JPY nudged slightly higher.

• The yen pairs are generally performing well, with the GBP/ JPY and EUR/ JPY climbing higher this morning.

• Commodities are back on the rise with oil prices creeping above $40 again.

Coming up today: 

• Coming up today we have the ECB bid rate at 12.45. The ECB press conference follows at 13.30. No significant change is expected.
• Canadian NHPI is released at 13.30.

Trade Idea: 

• Now that oil prices are making something of a sustained recovery, the USD/ CAD is worth a look.
• With the US dollar slipping into neutral mode, the Canadian dollar has enjoyed the rebound in oil prices, driving the USD/ CAD lower.

• A good way to play this is a LOWER trade predicting that the USD/ CAD will close below 1.3200 in 14 days for a potential return of 132%.

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