Investors have been enjoying the higher interest rates offered by the New Zealand dollar. The kiwi dollar is set to rise higher in the near-term on anticipation of another rise in dairy prices, at the GlobalDairyTrade auction. New Zealand’s biggest export has been affected by the drought conditions in the country. On top of this, New Zealand’s performance services index has had consecutive gains since the middle of 2014. These fundamentals highlight a potential short squeeze scenario in the NZD/USD, indicating potential investment opportunities.
Investors Notes:
- Retail sales reached almost 2% for the last quarter, the biggest gain in the index in the last 2 years.
- According to technical indicators, short-term moving averages indicate a short term bullish crossover, though this is not supported by long-term moving averages.
- Divergence in MACD and signal lines indicate continuation of the bullish trend on the daily chart.
- Banc De Binary analysts predict that the New Zealand Dollar will continue its short term bullish momentum, indicating a potential upward movement in NZD/USD for end of February contracts.