Okay, the dollar is weak right now, really weak; a one-month low weak. The USD/JPY dropped from 123’s to 121’s and EUR/USD back touching 1.10’s. Chaos in oil continues as the equities market remains to be volatile. I’m not sure if this is the mess pre FOMC brings, but it’s an ugly time to be a trader right now.
I was having an off day today but not a too bad one. I finished the day slightly under breakeven until the New Zealand Policy Statement released. Before the data, many analysts were betting that the RBNZ were cutting rates. It was around 3:00 p.m and I was done trading, but I thought this would be a good opportunity to make back some of my lost capital. The statement released and the quarter point cut was spot on. The Policy Statement was pretty dovish as well. Easy trade to short the New Zealand Dollar, right?
The price initially spiked up, then down. I entered the trade to short the NZD/USD. The RBNZ just cut rates and Feds are due to raise rates, I thought this thing was going to tank. As the noises in the market drove price up and down, I stacked my position as price continued to go against me. In the end, I was left defeated as the currency rose over 100 pips… My capital once drained again… wtf, NZD.
This is going got be my last attempt to short the NZD/USD overnight, I have a small position I’ll be holding. If this doesn’t hold I’ll just accept defeat. I’m also in a short EUR/USD I’ll hold as well.