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Fundamental Analysis Discuss the macroeconomics of fundamental analysis.

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Old 05-26-2008, 11:21 AM   #1 (permalink)
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Default What is there for NZD.

Kiwi is even under the pressure against USD. Analysts predict the NZDUSD rate to be at 0.65 - 0.73 range by the year end.
NZD has to start cutting rates due to significant slowdon in their ecconomy. acctualy there are many indicators saying that it is best time to sell nzd especially against AUD due to the fact that aussie is a commodity currency, which is being favoured recently plus it acctualy will be soon borrowed at higher rates, as boa signalled on tuesday i believe
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Old 05-26-2008, 11:21 AM   #2 (permalink)
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Talking fundamentals, nzdusd is in a nice down chanal with resistance at 0.7830-50 so it was great opportunity to short it.
The resistance in this chanal is at 0.7350 at the moment
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Old 05-26-2008, 11:22 AM   #3 (permalink)
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Talking models, the interests rates differential models and premiums on options crearly indicate that investors are seeing nzd lower. Futures also indicate the same scenario.

Now the question is against what should you short it?
I think AUD is the best choice. USD would be my second choice (only if coming data is strong)

so I say sell at 0.7770
SL above 0.7850
TP at 0.74 area

now just calculate simmilar for aud and its done.
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