May 11th 2016: Kiwi Dollar Pushes Higher

• The New Zealand dollar is out-performing overnight after the RBNZ expressed concern about the hot housing marketing, but stopped short of any measure to tighten lending. The NZD/USD is unchanged this morning but saw some late buying interest last night.

• By contrast, the Australian dollar is pulling back with the AUD/USD and AUD/JPY selling off following yesterday’s brief rally.

• A recovery in oil prices yesterday has put the pressure back on the US dollar index, with small follow-on selling this morning.

• The yen pairs are generally on the back foot as money seeps back into the yen from the dollar.

• Coming up today we have the UK manufacturing production at 09.30.
• This is followed US crude oil inventories at 15.30.

Trade Idea: 

• The AUD/USD might have rallied yesterday, but pressure remains on the Australian economy with China still slowing.

• A good way to play this is a LOWER trade predicting that the AUD/USD will close below 0.73 in 21 days time for a potential return of 160%.

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