NZD USD Traders Worried about China’s Next Move

Like the Australian Dollar investors, New Zealand traders are concerned about the possible negative effect a cut in stimulus by China will have on exports and the growing economy.

Without any solid evidence to support this speculation, traders are paring their positions in anticipation of the worst.

A positive comment by a Reserve Bank of New Zealand official earlier in the week is currently limiting losses.  This official hinted that the RBNZ may raise interest rates sooner than expected.

The chart indicates that this market is in a position to post a minor top, but still far from changing the main trend to down.  A daily or weekly closing price reversal will be the best sign a major top is forming.

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