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NZDCAD, A Good Time To Sell?

NZDCAD, A Good Time To Sell?
Asked by
Jon Steeler categorie-icon time-icon2 months ago
1 Answer Answer Question

Sam Bouman
Answered time-icon2 months ago

With the NZD cutting rates last night and oil possibly about to move higher it seems like this could be a good time to sell the NZDCAD.

If we look on a fundamental side for the NZD they just last night cut rates and mentioned another possible cut next year and we saw an initial drop before it regained somewhat and steadied, we have also seen a weakening in jobs growth and overall businesses are pessimistic on the overall outlook. On top of that we of course have the ongoing trade war and we can then start to build a picture as to why the NZD may sell off somewhat.

On the CAD side, we believe that we will see an increase in oil prices start to come in which is always a good sign for the CAD, we also can see that their recent slump has been due to the winter months which has hindered output, this should mean that now going into summer we should see their economic output start to pick up which should benefit the currency. China oil imports also increased and as mentioned any pick up in oil is always a good sign for Canada regardless of their own oil production issues.

So as you can see just purely looking at the fundamentals there is a real case to sell the pair, as long as you are able to pinpoint the right entry technically.

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