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NZD/USD Signal - Risk Appetite on Trump - 23 Jan 2017

Signal details
Entry Price: 
0.7200
Close Price: 
0.7218
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
OTM
How we trade
5/5 of 4 ratings

The currency markets woke up to the new U.S. President Donald Trump who was sworn in on Friday. Following his first inaugural speech, the markets moved into a risk aversion mode with the U.S. dollar seen trading weaker since the open. The reasoning behind the weaker U.S. dollar was attributed to the protectionist speech given by Trump on Wednesday and the prospects of imposing trade tariffs against some imports from China. The economic calendar is light today thus putting more focus on the politics for the moment.

NZDUSD has been posting steady gains over the last week with price rallying back to the 0.7210 highs earlier today. However, there are ample signs of the upside momentum losing steam which indicates that NZDUSD could be sliding back lower in the near term. Expect the declines in NZDUSD to push the Kiwi lower towards 0.7178 at the very least. Therefore, purchase PUT options with 21:00 GMT expiry time at 0.7200.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.