Chart of the day: Kiwi’s outlook brightens
Foreign exchange dealers call the New Zealand dollar a kiwi after the little bird native to that country. In a Thomson Reuters poll of 56 currency analysts published on Friday, they raised their long-term forecasts for it against the US dollar, mainly on a more favourable outlook for commodities and especially milk which is their biggest export earner. Worth noting too that the Reserve Bank of New Zealand’s target interest rate is 1.75 per cent – considerably higher than those of other nations. It has rallied 3.5 per cent in the past three weeks, partly to catch up with other major currencies. A break above the top of the weekly cloud should trigger a squeeze up to the top of rectangle consolidation.
Nicole Elliott is a technical analyst