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#Saxostrats: Why I'm looking to short NZDCAD

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November 03, 2015 #saxostrats, NZD, cad, canada, canadian dollar, data, economy, employment, employment figures, employment rate, foreign exchange, foreign exchange market, foreign exchange strategy, forex, forex buying, forex idea, forex market, forex markets, forex trading, fx, fx crosses, fx forex, fx market, fx markets, fx options, fx strategy, fx trade, fx traders, fx trading, fx volatility, kiwi, kiwi dollar, kiwi dollar could be punished, new zealand, new zealand dollar, new zealand economy, new zealand kiwi, nz, nz bank, nz central bank, nz dollar, nz interest rates, nzd fall, nzdcad, nzdollar, reserve bank, reserve bank of new zealand, saxo, saxo bank, saxo tv, saxostrat, saxostrats, trading, tradingfloor, tradingfloor.com, us dollar, us dollar bulls, us dollar index, us dollar rise, us dollar strength, usd
In this #Saxostrats, John Hardy is looking to short NZDUSD. He says that the New Zealand dollar has been overachieving of late, particularly in relation to its commodity dollar peers, and is now heading lower. He also says there is a renewed negative focus on the Reserve Bank of New Zealand ahead of the employment report due out late Tuesday (CET). He says low inflation data leaves room for Kiwi downside.

Hardy is looking at NZDCAD to avoid some of the volatility in the US dollar this week. He also believes the Canadian dollar could get a boost from strong US data at the end of the week but shouldn't be too badly hit if that data is weak.

John points out that some of the technical levels may seem arbitrary because NZDCAD doesn't receive much focus. He is looking at:

Entry: 0.8780-0.8820.
Stop: 0.8960.
Target: 0.8520, 0.8380.
Time horizon: Up to a month.

And you can read more about John's #Saxostrat here.