My thoughts are that the Usd is in for a correction, but with the price of brent crude being so low and America being such a huge consumer of petrol, this free money has been reinvested into spending driving up the Indexes and making the US look viable again to outside investors. Usually even with these fundamentals the currencies eventually correct, even if just for a breath.
With Switzerland voting no (supposedly) on increasing it's gold backing, this did not help in the reversal of Usd's strength. Not that I think that modest of an amount of gold would move anything, but what it did was reinforce the idea that central banks can operate with single digit % holdings. That along with low oil prices keeps the preexisting ideas intact.
This week there was no data released for Nzd, but there was multiple economic data releases for Australia and the two pairs weighted against the Usd do move in tandem.
Aud GDP came weaker then the previous quarterly release, a drop of 0.2% in quarterly gain. During this week, Aud trade balance came out again negative, showing that exports are still lower than imports. Retail trade had dropped too, not helping that regions standings. I acknowledge this is not New Zealand economic data, but with the amount of time I plan on holding this position, they do have a high correlation of 0.96 to 1.00
With things looking the way they have played out this week, this position will likely be exited this week with a gain. Quite a bit of data was released and thankfully it was in our direction. Some decisions in the world of precious metals helped on the Usd side and some data on the Nzd side helped out.
