The New Zealand dollar tumultuous during Thursday session

The New Zealand dollar initially tried to rally during the day on Thursday but found enough resistance near the 0.73 level to roll over. This coincided with Justin Trudeau, Prime Minister of Canada, suggesting that the NAFTA talks are progressing quite well. I think that the market will find buyers eventually though, especially as we approach the jobs number, because it is such a major influence on where we go next. The jobs number being good for the US could send this market lower, but I think more than likely that initial reaction will be reversed as it will be considered a “risk on” move, and the New Zealand dollar will probably pick up a bit of momentum.

The 0.73 level will probably be a target, followed by the 0.7350 level. Ultimately, I think this market is still going to go looking towards the 0.75 handle, an area that is not only psychologically important, but structurally important as well. I expect volatility, but the volatility is going to be a short-term issue, and once we get a bit of clarity after the jobs number, I think that the overall uptrend should continue. If we get good news out of the trade war front with the US and China, that could help the New Zealand dollar as well, as it should allow for the movement of capital throughout Asia, which of course the New Zealand dollar is highly leveraged to. The meantime, these pullbacks should offer value.