My dual currency trade

Yesterday was my fixing date again, I did another dual currency option trade. This time, the amount doubled as my NZD FD has matured. As NZD FD interest rates now are only 7%+ pa, I had decided to take it out and do dual currency instead.

I paired my NZD with CHF with a yield of 19.1%pa at strike/spot 0.7728 for one month. This is so far the highest yield I've got. In retrospect, it was indeed a quite dangerous and bold move as I was literally shorting NZD/CHF at 0.7728. NZD had a little rebound recently but not substantial enough to warrant a confirmation in change of direction of its downtrend. Fundamentally, the Reserve Bank of New Zealand had also indicated on July 24 that more rate cuts are likely in the following 6 months. NZ economy has also been weaker, causing poor sentiment. Looking at monthly charts, NZD has repeatedly declined over the past 3 months. Unless there is unexpected good news, NZD should continue to drop. However, I noticed that the drop in NZD is slowly losing momentum recently so I guess it will probably steer sideways for the time being.