- The New Zealand dollar has fallen a bit during the trading session on Monday, as we continue to see a lot of noisy behavior.
- This is a market that I think will continue to look at risk appetite more than anything else and will obviously have quite a bit of influence thrown at it from the Federal Reserve.
- This is a situation where the markets continue to see a lot of questions asked of both the Fed and the RBNZ.
The 0.050 level is an area that's been important more than once, and therefore I wouldn't be surprised at all to see a scenario where buyers come in and try to defend this. That being said, if we break down below the 0.6050 level, then we could go to the 0.60 level. On the other hand, if we turn around and, break out to the upside, if we can get, above the 0.6150 level, then it's likely that we go looking to the 0.62 level.
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Noisy Behavior Ahead. Again.
With this being the case, I think you're going to continue to see a lot of noisy behavior. But I also believe that you are going to have to get very short term thinking and going when looking at this pair. Keep in mind that the New Zealand dollar is highly sensitive to the risk appetite of traders around the world as it is considered to be a commodity currency.
And of course, it is driven by Asia more than anything else. So, with all of that, I think you have a set up where we will continue to go back and forth more than anything else but do pay attention to that 0.6050 level. It could lead the way to where we end up going over the next several days, if not weeks. The NZD/USD market is a market that typically can be choppy and volatile, but it does have a certain “risk appetite” aspect to it. In general, I believe that this pair will continue to see a lot of questions asked of it and when we can break to the upside, or the down.
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