The USD/NZD has seen bullish activity today as the forex pair enjoys positive momentum upwards as investors come to grips with Prime Minister Jacinda Ardern’s strong showing and her Labour Party’s ability to now govern on their own without the need for partners. In a move which might have been implemented to allow financial institutions rest comfortably, Prime Minister has indicated she is willing to take on coalition members in order to create a wider governing base.
Jacinda Ardern is well regarding globally by many because of her management capabilities which she exhibited when coronavirus began to surge. Her quick actions and clear government mandates helped to keep coronavirus in check in New Zealand. However, while the virus has not devastated the health of its citizens, New Zealand is suffering from data which is recessionary and some observers feel that the coming years will be a test of Ardern’s progressive politics which some investors may find burdensome.
The NZD/USD is a rather stable forex pair and it has enjoyed a solid bullish run higher since the middle of March. However, since the middle of September some nervousness did develop within the New Zealand Dollar as financial institutions braced themselves for the elections and the unknown.
Prime Minister Ardern’s victory gives investors clarity and even though some financial houses may question her economic policies, these same institutions now know what to expect in the coming few years as her Labour government holds the reigns to power. Because of ability to have an outlook on the New Zealand economy and notion that Ardern will be under pressure to improve the nation’s economic footing as it battles recessionary shadows, investors may believe the Prime Minister will be open to considering some changes to her rather progressive policy. This in the short term may help the NZD/USD pick up additional bullish momentum.
Buying the NZD/USD within its current vicinity on small retracements lower may be a solid speculative wager. Also important for traders should be the rather strong notion the New Zealand Dollar tends to develop solid trends which can be taken advantage of and turned into tidy profits when positions are managed with care. Buying the NZD/USD and looking for upside bullish momentum cannot be faulted near term and patient traders may be rewarded for stepping into this forex pair with a positive outlook.
NZD/USD Short Term Outlook:
Current Resistance: 0.66450
Current Support: 0.65950
High Target: 0.66760
Low Target: 0.65300
