The uptrend continues and the rates have already reached their peak values. The NZD was more expensive than now prior to November 2017, that is, almost 4 years ago. Despite a large number of negative factors, the NZD is still supported by optimism on the market and weak demand for safe assets. The deterioration of trade relations between Australia and China, as well as between New Zealand and China, has not yet had a significant impact on the value of the NZD, although in the future this may lead to a weakening of the NZD. Disappointing data on business activity in New Zealand in April also remained without much attention.
This week the value of the New Zealand dollar has not changed significantly. The rates remain at highs. Further upward movement will be difficult, but the Japanese yen, like all safe assets in general, is not yet receiving proper support. This may also be due to the Bank of Japan, which has set unrealistic targets for changing monetary policy.
Most technical analysis tools indicate the effectiveness of the deals on the trend. At the same time, many indicators indicate a high probability of a price correction. Therefore, following the generally accepted rule, we believe that the best solution will be the deals to SELL in order to take a profit from the price correction that will definitely occur.
