NZD/USD go sideways during thin Friday trading

The New Zealand dollar went back and forth on Friday, as most Forex pairs did due to the holiday. European banks are close, and that of course affected massive amounts of volatility and liquidity in this market. If we can break above the 0.7250 level, I think at that point the buyers will come in and continue to push higher. The weekly candle is a bit of a hammer like candle, and that of course suggests that we could get an opportunity. However, we could just as easily pull back to the 0.72 level looking for support, which I think we would find.

With the current talks about trade wars going around the circles, if we get negativity out of the headlines, that will certainly push this market lower as the New Zealand dollar is highly leveraged to the Asian economies, and of course commodity markets in general. Money will typically go to US treasuries at that point, in a bit of a safety bid. On the other hand, if we get good news out of that front, I anticipate that the New Zealand dollar and all commodity currencies in general will do quite well. I think that you can, and a lot of volatility, and unfortunately this week and will feature a lot of headlines that could move the market. At this point, it’s probably better to wait to see how the day plays out on Monday before putting serious money to work. Caution is the better part of valor.