The NZ economy is, directly and indirectly, significantly affected by fake trade wars. This year follows on from sanctions imposed against Russia for example which redirected subsidised cheese and other dairy product mountains from Europe and USA to China and collapsed the realisations of other exporters of dairy products (unsubsidised) e.g. New Zealand. Being small and agriculturally oriented are negatives in a world of mighty adversaries trying to sort each other out. Even textbook macro and micro sets of policies would not save small, open economies to these war games. The RBNZ simply reacted to such world realities facing NZ this year. NZ needs protection from its allies.
Two Ways to Trade the New Zealand Dollar Tumble
It is rare nowadays to see high level volatility and/or productive underlying trends. The New Zealand Dollar (Kiwi) seems to be promoting both. The currency has been under significant pressure for some months owing to its steadily deteriorating monetary policy outlook and a general distaste for the historically-low carry the currency renders against a backdrop of uneven risk appetite. The question therefore is: how novel is this fundamental perspective? Does the market need to account for a troubled outlook that is not presently reflected in the value of the currency or has its slide thus far moved the currency to a fair discount? The fade ... (full story)
- Posted: Aug 10, 2018 12:12am
- Submitted by:Category: Technical AnalysisComments: 1 / Views: 1,032