The market’s strongest currency on Friday was the NZD and the only explanation I can think of is that the Chinese buyers are still very active. Despite strong US jobs data and risk-averse news out of the Ukraine, the NZD has stayed strong across the board.
The break below 1.0700 in AUD/NZD will have greatly unsettled the bottom pickers in this market. More evidence is needed and I’m staying on the sidelines despite the persistent urge to buy!
I know plenty of traders have been trying to sell the NZD against the GBP, CAD and even the JPY, but the price action suggests that the NZD gains aren’t done with yet.