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ABC123LeiaBiggy

979
I am bearish on the NZD today.

Before we dive into my NZD analysis. Let’s discuss what happened with our last trades.

On Friday, I sent you an email informing you of my bullish USDJPY bias into the 159 zone.

I attach below a picture of the USDJPY trade so you can study it.

As of today, I am bearish on the NZD :

1) China’s growth unexpectedly slowed down, retail sales came out at 0.2%. China is one of New Zealand’s biggest trade partners (they account for about 25% of new zealand’s exports). In simple terms, if China is affected, new zealand is affected too.

2) New Zealand’s unemployment rate is the highest since the September 2015 quarter, which makes it hard for them to raise interest rates as inflation rises.

3) New Zealand’s businesses are contracting, according to the BNZ-BusinessNZ Performance of Services Index (PSI).

As simple as that.

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