With many signs pointing to a possible break out of the USD-NZD exchange rate, the time for investors to speculate about the merits of investing in both currencies could be right now. If you are looking for the best NZD/USD/NZD pair, the following article is a must read.
As I write this article, the New Zealand dollar and the US dollar have been in a close race for the lead position of leading currency pair for the past couple of weeks. I expect the US dollar to gain on the NZD this week, but don’t be surprised if the NZD starts out lower in the coming days.
Meanwhile, if you are holding the NZD, the more you buy the SAD, the higher the chances that it will depreciate. Now the key point to take a stand on is, can the SAD depreciate more than the NZD?
So if the SAD goes up more than the NZD, it’s obviously going to push the NZD down and the SAD won’t be a big problem. At the same time, there is no real urgency in buying the NZD at the top of the NZD/USD exchange rate.
So how do you think this EUR/NZD will move? At present the EUR/NZD is just above 60 and could be in bearish territory if you are not holding it.
But, even if the EUR/NZD moves above the NZD in the coming days, I still don’t believe that you should be having your short positions ahead of the market. It’s too volatile to be effective with your trading.
So, what is the New Zealand dollar outlook for the New Zealand dollar on the long term view? Well, I think that there are three scenarios and they are as follows.
1. The NZD/USD exchange rate could move higher during the next few days and the NZD will hold its base at around 61.
2. If the market doesn’t move up and there is an Asian spot rate increase, the NZD could lose out. But on the upside, if the market makes a strong move, the NZD will make a comeback.
3. Now, if the market does rise during the upcoming days, we could see the NZD rebound in the upcoming months, but the global equity markets don’t move in the first few days of the month. This could slow down and if the New Zealand dollar opens up it might be more exposed to selling pressure.
I hope you have enjoyed reading this article. If you have any questions or you would like to find out more, please feel free to contact me via email.