The U.S dollar began once again to strengthen against the euro, which is approaching historically low levels, but this time the USD could not demonstrate the same strength against other currencies, in particular the New Zealand dollar (NZD). The kiwi successfully dealt with the pressure and even strengthened against the dollar.
The NZD gained an advantage after news about the increasing of milk prices that will stimulate production and have a positive impact on exports and the GDP of the country. The similar situation unfolded on the real estate market. The cost of housing is increasing in price, encouraging the building of new homes. Furthermore, the Reserve Bank of New Zealand took the decision to change the discount rate. It is expected that the rate will not change at this time, which has had a positive effect on the cost of New Zealand's currency.
According to the chart, the rates of the NZD/USD are in the frames of the rapid upward trend formed in January. It is expected that the trend will slow down, but the peak has not been reached yet and the strengthening of the NZD will continue. in this situation the most optimal course of action is to open deals with the trend (buy). Now is the best moment because the rates are near the line of resistance and can go up. The Stochastics oscillator confirms this.
