Forex Flash: NZD crosses offer upside – ANZ
FXstreet.com (Barcelona) - The daily cumulative moves in NZD vs. USD, CAD, JPY and GBP are shown to provide greater granularity on the December seasonality effect. On average, the NZD has a tendency to appreciate in the first few trading days in December, before consolidating mid-month and pushing higher towards the last few trading days of the month.
"To take advantage of the December seasonality effect, we recommend the following two trades: Long NZDCAD at 0.8165, targeting 0.8350 with a stop-loss at 0.8090, and long NZDJPY at 67.22, targeting 69.00 with a stop-loss at 66.70." writes Khoon Goh, Senior FX Strategist at ANZ.
According to Goh, "We chose the above two NZD cross rates because it offers the best directional odds and had the highest average percent gains. There is also the advantage of taking out USD risk given the uncertainty over the US fiscal cliff."
"To take advantage of the December seasonality effect, we recommend the following two trades: Long NZDCAD at 0.8165, targeting 0.8350 with a stop-loss at 0.8090, and long NZDJPY at 67.22, targeting 69.00 with a stop-loss at 66.70." writes Khoon Goh, Senior FX Strategist at ANZ.
According to Goh, "We chose the above two NZD cross rates because it offers the best directional odds and had the highest average percent gains. There is also the advantage of taking out USD risk given the uncertainty over the US fiscal cliff."
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