Don’t Ignore the Kiwi – It Can Deliver Some Great Trades!
The Kiwi (NZD) is often overlooked in forex trading. But it can deliver some great trades. High volatility and commodity links create sharp moves. Traders who ignore it miss opportunities.
A currency often overlooked by forex traders is the New Zealand dollar, which is a great shame because this commodity dollar can often deliver some impressive and consistent trades, particularly on the slower time frames. And for a reason we only need to glance at the daily chart of the currency strength indicator.
Following a sharp move lower in August towards the oversold region of the CSI, the New Zealand dollar then spent the next four weeks trying to move away from this region, before finally finding some traction towards the end of September. Since then the NZD has moved sharply higher against most of its counterparts, with a number of pairs lifting off simultaneously.
Which NZD Pairs?
Of the pairs which make up our NZD matrix, it has been the NZD/USD and NZD/JPY which have delivered some of the best trades, followed by the GBP/NZD and EUR/NZD.
The move higher in the NZD/USD followed a period of consolidation for the pair as it bumped along the 0.62 region. It was the arrival of the hammer candle of 23rd September which was the first sign the pair was likely to reverse higher. Furthermore, this initial signal also coincided with a move higher for the NZD on the CSII. Since then the pair has been moving steadily towards the crucial volume point of control at 0.6553, a price point it has broken in today’s trading.
For the NZD/USD today’s break and hold above the VPOC is also important for two reasons. First, the price action is now just 40 pips or so shy of the high of the volatility candle of 24th August, and second, the price action is also approaching the 100 ma, which currently sits at 0.6681.
Moving forward there is no reason to suppose NZD/USD should not continue to move higher in the short term although we should expect a short period of consolidation in the 0.6680 area where resistance now awaits.
Why Kiwi Stands Out
NZD ties closely to dairy and risk sentiment. Strong global growth boosts it. Weakness hits during risk-off. Volume price analysis (VPA) spots these shifts early. High volume on up moves confirms conviction.
Spotting Kiwi Trades
Use the currency strength indicator to rank NZD. Extremes signal potential. Pair with AUD or USD for crosses. Quantum tools on MT5 or NinjaTrader highlight Kiwi strength quickly. Anna Coulling’s VPA approach turns overlooked pairs into winners.
Don’t ignore the Kiwi. It rewards attention with terrific trades. Quantum indicators make spotting them simple and reliable.
Commodity Currencies: Profiles, Impacts, and How They Move Together
Commodity currencies are unique in forex. They tie directly to raw material prices. The main ones are the Australian Dollar (AUD), Canadian Dollar (CAD), and New Zealand Dollar (NZD). These “comdolls” react to global demand. Traders watch them for risk sentiment clues.
Profiles of the Major Commodity Currencies
- Australian Dollar (AUD): Linked to iron ore, coal, gold, and LNG. China demand drives it heavily.
- Canadian Dollar (CAD): Oil-dominant (Canada major exporter). Energy prices move it sharply.
- New Zealand Dollar (NZD): Dairy and agriculture focused. Soft commodities influence.
These currencies behave differently from safe-havens like JPY or CHF.
What Impacts Commodity Currencies
Global growth boosts them. Rising commodity prices increase export revenues. This attracts capital. Risk-on sentiment amplifies. Weak growth or risk-off hurts—demand falls, prices drop.
Key drivers:
- Commodity Prices: Direct correlation—high oil lifts CAD, low gold pressures AUD.
- China Economy: Major buyer for AUD/CAD raw materials.
- Risk Appetite: Equities up = comdolls up. Equities down = safe-havens gain.
- Interest Rates: Higher yields support (e.g., RBA hikes boost AUD).
Volume price analysis (VPA) confirms impacts—high volume on moves shows conviction.
How Commodity Currencies Move Together
Comdolls often correlate. Shared drivers create synchronized moves:
- Risk-on rally: AUD, CAD, NZD strengthen together vs USD or JPY.
- Commodity boom (oil/gold up): All three rise.
- Risk-off or China slowdown: Simultaneous weakness.
Quantum currency matrix on MT5 or NinjaTrader shows this visually. Relational strength aligns during events.
Trading Commodity Currencies with VPA
Use VPA for timing. High volume on upmoves validates conviction. Low volume extremes signal reversals. Quantum currency strength indicator ranks them live. Focus on extremes for high-probability trades.
Anna Coulling’s VPA approach with Quantum tools turns commodity flows into disciplined opportunities.
Commodity currencies offer relational edge. They move together on shared drivers. Quantum indicators make spotting it reliable. Trade comdolls with VPA for consistent results.
By Anna Coulling
Creator of Volume Price Analysis