New Zealand dollar continues to grind higher on Thursday

The New Zealand dollar has rallied again during the trading session on Thursday, breaking above the psychologically important 0.70 level. By doing so, it looks as if the market is ready to continue to try and go higher. I think at this point, it’s likely that the market will favor the Kiwi dollar in general, but I think that it’s only a matter of time before things reverse as there is a lot of concern and geopolitical problems out there just waiting to happen. Ultimately, I think that the market breaking down below the 0.6975 level, then we could roll over and go much lower.

If we can make a fresh, new high, and it looks very likely to happen, then I think that the market probably will at least look towards the 0.71 level. The 0.72 level was important in the past as well, so it’s possible that we go that high. I think that this market will continue to react on global headlines, and of course fears about tariffs and trade wars around the world. That will drive this market either higher or lower based upon risk appetite. Right now, it looks like the market is willing to go a little bit higher and perhaps continue to strengthen. However, some type of retaliation from Canada, Mexico, or more importantly the European Union, this market will turn around.