Being short the NZD/USD is my current favourite trade. While trading the Kiwi might not be as glamourous as as other pairs, I don’t mind because it’s been the weakest and I care about momentum.
When the nonfarm payrolls came out weaker than expected and the USD rallied against the majors, I took this as another sign that I wanted to be short the Kiwi. USD strength is one thing but it’s also important to find the best pairs to trade so you can get the most bang for your buck.
Kiwi is the Weak Link
The NZD has been incredibly weak over the last little period and I always like to compare it to the AUD. While the Aussie has held up OK, the NZD has tumbled.
Just imagine what might happen if the USD appreciates further. I’m looking for a break of 0.7100 this week.