And finally, the New Zealand dollar is rallying after the RBNZ raised rates, but there’s also a pricing in of another rate hike in September that is making the Kiwi dollar a little bit of an outlier and a lot of this comes down to the conflict in the Middle East, so we’ll see how that plays out. I still think there’s a lot of resistance above somewhere near the 50-day EMA or the 0.58 level. I think you’re looking at the possibility of shorting signs of exhaustion.
If you’re a short-term momentum trader, this could be a play for you now, but for myself, I’d rather take the swing trade if and when we get to that area. I still think the US dollar will come out on top in general. Sooner or later, we’ll get over the excitement of a potential interest rate hike in New Zealand, and we’ll go back to that US dollar inflationary safety trade.
