Beginner Forex traders, this can be a beautiful opportunity to go LONG on this currency pair. Use your Forex trading strategies to give you a clear signal on the Daily and 4-Hour charts when to enter this pair.
Forex For Beginners – A word of advice
Look for currency pairs with a clear direction, never assume what the market is going to do!
Use your well tested Forex trading strategies and stick to the rules of those strategies.
Australian dollars struggling against the New Zealand dollar.
Let’s take a look at these to Australasian currency pairs.
Market watchers normally look at the Australian dollar against the US dollar or the New Zealand dollar against the US dollar, but recently the Aus/Nzd cross has been the talk of the town.
The Australian dollar is a commodity currency because the country exports abundant natural resources, including iron ore, coal, natural gas, copper, gold, uranium and renewable energy
Australia has strong trade ties with China and the growing Chinese economy has been a huge driving force behind the Australian economy the last few years, in saying that the Australian government is also looking to diversify its export market to other pacific countries.
The New Zealand dollar, on the other hand, has In the past two decades transformed from an agriculture driven economy to a global competitive, industrialized free market economy.
New Zealand main exports include meat, dairy products, fish, wood and wood products, machinery and high-tech computer equipment.
The new Zealand dollar is among the 10 most traded currencies in the world.
So, let’s now look at the Aud/Nzd cross
The New Zealand dollar has been the most talked about and popular currency over the past 12 months. In October 2014 the Aud/Nzd retraced to 1.1300 and has since been descending quite rapidly.
The pair broke below its all-time low at 1.0425 and is about 200 pips away from parity.
The drop below 1.0425 has left the Aud/Nzd vulnerable and the pair is now clearly in unchartered territory.
The pair is still experiencing strong down trend and some analysts predicting that the pair is headed for parity and we can clearly see that the Aussie/ Kiwi is struggling to find upside momentum at the moment. We can, however, start to see indecisiveness on the monthly and weekly charts, as well as a very interesting candle formation forming on the daily chart.
At the moment, the Australian dollar is trading at a record low against its neighbour new Zealand dollar. Can this currency cross hit parity?