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#SaxoStrats - Buying NZDUSD put for downside potential

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Ahead of both Reserve Bank of New Zealand and the Federal Open Monetary Committee meetings, Saxo's John Hardy explains why he's looking to buy an NZDUSD put option. 

He says the market is divided on whether the RBNZ is going to cut rates. But Hardy doesn't think the central bank wants a stronger kiwi. 

Meanwhile most analysts are convinced the FOMC will raise rates next week, leading to a potential policy divergence between the two banks which could send the kiwi lower. That's why he's looking for NZDUSD downside potential.

In this #SaxoStrat, John discusses levels and timings.
Strike: 0.6525
Expiry: December 30, 2015
Target: Spot trading below 0.6400

And you can read more about John's trade here.