- The Kiwi dollar in the early hours on Thursday has fallen a bit, but it looks like we're hanging on to this 0.60 level for some type of bounce.
- At this point, if we can maintain above this level, then I think it makes a certain amount of sense that perhaps we try to get back towards the 200-day EMA and the 50-day EMA indicators above.
- Keep in mind the New Zealand Central Bank did cut rates recently, and therefore, that's put a little bit of a damper on any idea that the New Zealand dollar was going to be strong.
But at the same time, it looks like the entire world is desperately clinging on to the idea that the Federal Reserve is going to step into the situation and save everybody simply slashing rates willy nilly to make sure everybody gets gains again.
Top Regulated Brokers
Will the Federal Reserve save the day?
Whether or not that can happen remains to be seen, but really at this point, I think you're looking at a market that could have a 100 pip move to the upside and really wouldn't change much. On the other hand, if we were to break down below the 0.5975 level, then we could send the New Zealand dollar down to the 0.59 region.
This is a market that tends to move on to Asia, commodities, and of course, global growth, and right now, a lot of that is in flux. Really, what everybody's excited about is that Uncle Jerome may come into the markets and save everyone. This, of course, is going to be a bit of a problem because, although clearly the Federal Reserve does the bidding of markets in Wall Street, the reality is that inflation in the United States is still an issue. So, the Fed is essentially stuck between a rock and a hard place.
Ready to trade our daily Forex analysis? Here's a list of the brokers for forex trading in New Zealand to choose from