If we look at the world economy and compare the interest rates we will see that the NZD has the highest interest rate of 3% .While Gross domestic product was only 0.2% and Global Dairy Trade Price Index declining for 18 weeks we can see a lot of room for more rate cut. in the future.In May NZD was clearly desperate decline in employment in the first quarter. All economic indicators point to the poor state of the economy of New Zealand.
In this article I will try to show the fundamental and technical analysis of the NZD currency, and to point out that there is still room for new lower price levels, new bearish wave.
2.0 Fundamental analysis
Rate cut was imminent in July. All analysts had hoped, and as always happens, after such decisions the currency starts to fall further.
Figure 1: Rate cut economic event in July 2015.
But when we make analysis we need to be open-minded. So I will give you in Figure 2. fundamental events for and against bullish and bearish direction.
Figure 2: Economic events which can cause bullish or bearish scenario for NZD/USD
As I wrote in introduction, bad employment data, weak GDP and now rate cut, everything points to the poor state of …