Chart of the day: Time to buy New Zealand dollar?
The kiwi, as New Zealand’s money is affectionately known, is almost this year’s worst-performing currency, coming a close third to Turkey’s lira and the South African rand. The dubious accolade is linked to the coalition’s decision last week to choose 37-year-old Jacinda Ardern of the Labour Party as the country’s prime minister. Volatility of the New Zealand dollar has almost doubled this month with put options consistently more expensive than calls. The drop, however, is not statistically significant and prices remain within the large rectangle chart pattern that has dominated for a year. Let’s see if the long-term trend-line support holds, in which case it presents a buying opportunity.
Nicole Elliott is a technical analyst