Strange NZD behavior

The RBNZ came out with a decision to raise the NZD cash rate by 25 points to 3.5 from 3.25.

This decision was largely expected though normally, even in this case, the currency tends to rise substantially.

Strangely enough, the NZD not only refused to rise, but even went down substantially.

Explanations of several forex columnists revolved around the statement of an RBNZ governor that this would be the last raise for some time. While this statement is a bit of a let down, this point of  view ignores the fact that the NZDD has the highest cash rate at the moment.

The AUD has a rate of 2.5 right now so the NZD has a significantly higher rate. Sure its a far cry from the 7% in 2008 for the AUD, but 3.5 for the NZD is certainly nothing to sneeze at.

Anyway regardless of this curious behavior, I am happily trying to go long on the NZD right now in an effort to use it as a replacement / supplement for my AUD in so far as my carry trades are concerned.

Who is the Forex Scribe?

The Forex Scribe was exposed to the wild and wonderful world of Forex trading more than 5 years ago when he was commissioned to write about Forex trading. While the Forex Scribe was well versed in the financial world as well as world economics, the retail Forex trading segment was largely unknown. And during the span of 5 years, the Forex Scribe went on to study the Forex market while writing articles about it. Eventually, he went into trading with demo accounts and several years back, began gradually trading with real money. No the Forex Scribe is not a rich trader, not even close. BUT he is a veteran of many margin closeouts, wrong decisions and some right ones. It's been a roller coaster ride, but the learning experience makes it worth it. Everyday, until today, the Forex Scribe learns something new because despite being in Forex for almost half a decade, he feels as though he is still a novice at it. The purpose of this blog is to share his experiences with forex. Hopefully on a daily basis but knowing how hectic trading can be, several posts per week would be a more realistic expectation. The Forex Scribe is no expert but that is why he decided to blog about. To offer an alternative view and opinion about the market, from someone who is for all intents and purposes, a layman. By doing so, it his hope that he can help his fellow laypersons get a grip on what the Forex Market is all about and how one can navigate safely through these sometimes treacherous waters.