Increased Appetite for Risk Drives NZD USD Higher

Like the Aussie, the rally in the New Zealand Dollar was primarily driven by increased trader appetite for risk.  The economy is going to have to start to show signs of a recovery or gains may be limited.

Although the fundamentals do not support it, the NZD USD pushed higher throughout the New York trading session. Like the Aussie this pair was primarily by increased trader appetite for risk.

Speculators are trying to build a case for the start of a bull market but gains could be limited until the New Zealand economy starts to show signs of a recovery. Most speculators are hoping that an economy recovery in China leads to increased New Zealand exports.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More