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5 Mar 2013
Forex Flash: Short NZD/USD stopped out at break even - Westpac
Westpac has aborted the short NZD/USD position at 0.8261, after calling for a potential slide on 1 March, with a zero return after lowering the stop-loss level to entry.
"The position was 0.9% in profit overnight, however the sharp improvement in risk sentiment in NY saw our trailing stop hit" explains Imre Speizer, FX strategist at Westpac, who adds that "the factors motivating the trade remain in place, however."
Imre also notes: "Speculative NZD/USD futures positioning is long and extreme, and global sentiment continues to be weighed down by US spending cuts and the unformed Italian government. Markets are also more openly questioning the outlook for near term growth in China. Any near term bounces to 0.8315 would present fresh tactical shorting opportunities."
"The position was 0.9% in profit overnight, however the sharp improvement in risk sentiment in NY saw our trailing stop hit" explains Imre Speizer, FX strategist at Westpac, who adds that "the factors motivating the trade remain in place, however."
Imre also notes: "Speculative NZD/USD futures positioning is long and extreme, and global sentiment continues to be weighed down by US spending cuts and the unformed Italian government. Markets are also more openly questioning the outlook for near term growth in China. Any near term bounces to 0.8315 would present fresh tactical shorting opportunities."