I had been searching at NZD fundamentals, it's interesting to remember that NZD/USD has reached such.
NZ is a small country with a restricted market. Dairy product are mostly exported by it. Due to high NZD over the past few months the exports have dried out. No person will be willing to cover a high cost for goods you can buy from other nations at less than half of the cost. The gap between imports exports has become enormous, resulting in negative trade balance, negative current account, which is difficult to sustain. Businesses are shutting down in NZ. Inflation is rampant. Adding to this US market is cooling that is going to put strain on countries such as NZ AUD.
Institutions are pushing the price of the NZD high because they seem to be on a spree of mindless buying. I worry for those who have trusted their cash into these so called finance managers who've purchased NZD/assets in loads without paying attention to the fundamentals. As the fundamentals perform within the next, these resources will depreciate significantly.
I recall few months back when NZD/USD was around 69. NZ fund ministry was leaping up down which NZD is too high, have'nt heard anything from him whenever the NZD is currently nearing 75. The exact same is true for EU ministers they went crazy with addresses which EUR is too high. EUR/JPY is unacceptable. The EUR/JPY level subsequently was approximately 155. It is 163. This goes to show you that these ministers have limited knowledge of fundamentals the rhetoric is hollow.
Please be on the watchout for following week. NZD dollar is only hanging by the thread. Its alteration is unavoidable can be a violent one. Do not get trapped.
Any comments will be appreciated
Best of luck.
KKK