Trade Entry: AUD/NZD Long Position, 16-Jan-09

Security: Spot FX (mini) AUD/NZD
Direction: Long
Opening Price: 1.22885
Contract: 1 (mini)
Opening Contract Value: AUD$10,000 (NZ$12,288.5)
Stop Level: 1.2000
Amount Risked: NZ$288.5
Interest rate differential fee: -0.75% p.a.

Technical Justifications:

1. Standard & Poor’s warned that it could downgrade the country’s foreign currency debt rating, sending the Kiwi dollar on a downward spiral against other currencies; and NZ central bank expected to cut rates by at least 100 basis points on January 29, see here.
2. There is a breakout on the daily chart resulting in a 1-month high for the pair.

Chart

AUDNZD Spot Mini - Daily

Trade Entry: NZD/USD Short Position, 16-Jan-09

(Re-Entry)
Security: Spot FX (mini) NZD/USD
Direction: Short
Contract: 1 (mini)
Opening Price: 0.54750
Opening Contract Value: NZD$10,000 (US$5,475)
Stop Level: 0.56750
Amount Risked: NZ$200
Interest rate differential fee: -4.75% p.a.

Technical Justifications:

1. Economic data still points to a bearish NZD - CPI figures expected to deteriorate.
2. NZDUSD has experienced a 200pip retracement recently, but this is expected to be short lived and resume its bearish trend.
   

Chart

NZDUSD Spot Mini - Hourly

Trade Entry: AUD/USD Short Position, 16-Jan-09

(Re-entry No.2)
Security: Spot FX (mini) AUD/USD
Direction: Short
Opening Price: 0.67211
Contract: 1 (mini)
Opening Contract Value: A$10,000 (US$6,721.1)
Limit Level: 0.65211
Stop Level: 0.68411
Amount Risked: US$120
Interest rate differential fee: -4% p.a.

Technical Justifications:

1. Unfavourable economic conditions and lower commodities prices are still putting pressure on the AUD/USD.
2. There has been a retracement in the previous day, which saw the AUD/USD pair rally about 200pips from a 1-month low; however, if it fails to break the previous high (resistance) of 0.6811, then prices should resume its downward trend.

Chart:

Spot FX (mini) AUD/USD - Hourly

Trouble for the AUD and NZD Currencies

Both AUD and NZD currencies are dropping like dead flies, after experiencing weak economic data and wide expectations that there is more bad news to come, read the full story at:

http://www.bloomberg.com/apps/news?pid=20601083&sid=aywg4bFoMxdw&refer=currency

Trade Exit: NZD/USD Short Position, 15-Jan-09

Exited Short Position in Spot FX (mini) NZD/USD
Closing Price: 0.53563
Opening Price: 0.55668
Contract: 1 (mini)
Closing Contract Value: US$5,356.3
Opening Contract Value: US$5,566.8
Profit: US$210.50 (A$318)

Justifications:
Trailing stop loss reached.

Trade Exit: AUD/USD Short Position, 15-Jan-09

Exited Short Position in Spot FX (mini) AUD/USD
Closing Price: 0.66060
Opening Price: 0.66721
Contract: 1 (mini)
Closing Contract Value: US$6,606
Opening Contract Value: US$6,672.1
Profit: US$66.10 (A$100)

Justifications:

1. Trailing stop loss reached.
   

Trade Exit: USD/JPY Short Position, 15-Jan-09

Exited Short Position in Spot FX (mini) USD/JPY
Closing Price: 88.8500
Opening Price: 89.300
Contract: 1 (mini)
Closing Contract Value: Ұ888,500
Opening Contract Value: Ұ893,00
Profit: Ұ4,500 (A$77)

Justifications:

1. Trailing stop loss reached.