New Zealand dollar continues to show strength on Thursday

The New Zealand dollar initially rallied during the trading session on Thursday but continues to find a little bit of resistance above. As we pull back a bit, I would anticipate seeing buyers underneath, especially near the 0.7350 level. The level continues to be massive in its importance, and we have seen a couple of attempts break through it that failed. By that being the case, it looks like we are going to continue to find buyers in that area, so I would be comfortable buying that pullback. The alternate scenario of course is that we break above the 0.74 level, which should send this market looking for the 0.7450 level.

The overall attitude of markets continues to hinge on conversations between the Americans and Chinese, and headlines that crossed the wires will continue to be a major driver of overall risk appetite and the New Zealand dollar as it is a “risk currency.” New Zealand is highly leveraged to the Chinese economy, as well as the rest of Asia. If we start to see threats of a trade war, that of course will by extension threaten the vitality of the New Zealand export market, and of course have people looking for safer currencies to invest in. Because of this, I anticipate that we are going to see a lot of noise going back and forth, but it does look as if we have an overall upward proclivity in this currency market.