Fundamental Forecast for the Kiwi:Bullish
- New Zealand Dollar Ends October Best G10 Performer vs. USD, Up Nearly 6%
- China’s End To Their One-Child Policy, Causes Dairy-Led NZD To Pop
- For up-to-date and real-time analysis on the Kiwi and market reactions to economic factors currently ‘in the air,’ DailyFX on Demandcan help.
The New Zealand Dollar took flight over the month of October. Much relief for NZD Bulls came this week specifically despite an overtly dovish Reserve Bank of New Zealand and surprisingly hawkish Federal Reserve. Both central banks met on Wednesday, October 28 where Governor Graeme Wheeler gave an indication that further easing was necessary while the Federal Reserve set up expectations for a December rate hike. However, you would not know this by looking at price, which looks set to break out of a bull flag channel. A break above the channel could cause NZDUSD to test the 200-day moving average for the first time in 15 months, which currently sits near 0.7000.