The rates continue within the uptrend and located at the highest level in 7 years. Simultaneously, we can observe consolidation, with the potential to break through and reach a new top. Contrary to expectations, the Japanese yen has not become a haven for investors amid the military confrontation in Europe. Given the rise in commodity prices, it is commodity currencies that have become a key asset this year. As for New Zealand, as a food exporter, this country can count on a good result, given the rise in world prices for all types of food.
The monetary policy of the RBNZ also stimulates the NZD to growth. The focus is on the RBNZ meeting, which will be held on Wednesday. According to the most modest forecasts, the rate will be increased by 25 pips. Investors, such as the IMF, predict further aggressive moves and a 50-pip hike. Whatever decision is made, the Bank of Japan is hopelessly behind the RBNZ with extremely soft monetary policy. Therefore, in the absence of macroeconomic successes, the New Zealand dollar has an advantage over the JPY. Despite consolidation and peak prices, NZD remains our choice today. Most technical analysis tools also indicate the effectiveness of the deals to BUY.
