Amid recent trials and tribulations the US Dollar has suffered significantly on the Forex currency exchange for many different reasons leaving the New Zealand Dollar to rise against it. These gains were made possible in light of recent quantitative easing done by the Federal Reserve that made gains in the stock market possible but caused severe losses in the Forex market. New Zealand’s labor market report has made it even more of a bullish currency as time goes on. Pairing the USD with a currency rising in value such as the New Zealand dollar is a no brainer for any trader.
The New Zealand Dollar is very close to breaking the long held value of .8000 against the USD. This is incredibly significant because this level has never been broken and once it has been this pair will be the new favorite of many traders indeed. Betting against the United States Dollar has just taken on new meaning as things shape up to bear hearty pips to traders in the know. New Zealand’s central bank is keeping interest rates very attractive at the moment, this coupled with rising employment rates are a sure sign that the NZD|USD pair will continue to be bullish for a couple more weeks.
The Federal Reserve Bank in the United States has weakened the dollar to new extremes through supposed quantitative easing measures over the last couple weeks. These measures will continue for the next several months causing global devaluation of the United States dollar gradually. The global economy in all likelihood will completely shed the USD as its reserve currency in the near future. This eventual reality will change the face of the United States to the rest of the world and will usher in a new era of US fiscal policy. The New Zealand Dollar is just the beginning.
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