The uptrend formed in March during the first wave of coronavirus continues. The New Zealand dollar is receiving all-round support and last week was recognized as the strongest currency of the week. Also, the maximum was reached in the last 18 months, but apparently this is not the limit. Despite the continued spread of Covid-19 in Europe and the United States, the NZD is popular because China has effectively coped with the pandemic and has been recovering for a long time, which motivates investors to buy the currencies of countries that depend on exports to China. Another factor was the outcome of the US election and investors' hopes for improved trade relations between China and the US. News about the emergence and development of vaccines that should soon help end the pandemic continues to generally support commodity assets and contribute to higher prices for raw materials.
Data on Japan's GDP in Q3, which exceeded the forecasts, as well as industrial production output growth for the fourth month in a row should have strengthened the yen, but in fact only led to increased optimism among investors, which again played in favor of the New Zealand dollar. Of course, the data on the Chinese economy, which also shows a steady growth, also had an impact.
Despite reaching multi-year highs already , we are optimistic about the NZD and expect further growth. There are also no signs of a price correction, and most technical analysis tools tend to favor the effectiveness of the deals to BUY. That is why today we choose deals based on the trend that will be effective both in the short and long term.
