NZD/USD is currently a popular pair for carry trades, given New Zealand’s higher interest rates compared to the US. Here are some potential trade ideas:
Bearish Scenario:
– Short NZD/USD if it breaks below key support levels, targeting 0.6100-0.6200.
– Stop-loss above 0.6500 resistance.
Bullish Scenario:
– Long NZD/USD if it breaks above 0.6600, targeting 0.6800-0.6900.
– Stop-loss below 0.6400 support.
Keep in mind that NZD/USD is influenced by factors like:
– RBNZ Policy Decisions: Official Cash Rate and interest rates
– US Fed Policy: Federal Reserve’s stance on interest rates
– Trade Balance: New Zealand’s export-import dynamics
– Global Economic Indicators: GDP, CPI, and employment data
