Good to see the Kiwi on a bit of tear (the white line on the currency strength indicator), but comes as no surprise given how oversold it was at the end of last week. We’ve been tracking the NZD/USD which has had a huge move higher overnight & broken through the VPOC on the daily chart and is now touching the 100 ma.
As we mentioned in yesterday’s webinar although December price action can often seem erratic, it can nonetheless offer some great trading opportunities. And those of you who come along regularly to our webinars will know David & I are great fans of both the Kiwi and Aussie!
Kiwi Roaring Higher on the Currency Strength Indicator
The Kiwi (NZD) is roaring higher recently. This commodity currency shows strong momentum. The currency strength indicator highlights it clearly. NZD ranks at the top against majors. Traders spot bullish opportunities in NZD pairs.
CSI on Slower Timeframes
The currency strength indicator works across all timeframes. On hourly charts, it reveals sustained strength. NZD outperforms USD, EUR, and JPY. This slower view confirms trends for swing and trend traders. Scalpers see the same ranking on lower charts for quick entries.
Why This Matters for Different Traders
Scalpers use fast charts for entries. Swing traders rely on hourly for context. Trend traders watch daily for direction. The indicator adapts—extremes signal opportunities regardless of style. Volume price analysis (VPA) adds confirmation—high volume on NZD upmoves validates conviction.
Practical Trading Insights
Focus on NZD/USD or NZD/JPY for longs. Pullbacks with volume support offer entries. Quantum CSI on MT5 or NinjaTrader ranks live. Matrix shows relational depth. Anna Coulling’s VPA approach turns strength into disciplined trades.
The Kiwi roaring higher proves the indicator’s versatility. Quantum tools make spotting it reliable across timeframes. Trade with confidence—scalper, swing, or trend. The hourly currency strength indicator is showing some great potential setups. Have a great trading day.
The Kiwi Dollar: Fundamental Drivers and the Carry Trade
The New Zealand dollar (NZD), known as the “Kiwi,” is a commodity-linked currency. Its value reflects global demand for New Zealand exports. Traders watch fundamentals closely. These drive volatility in NZD pairs. The carry trade adds another layer. Volume price analysis (VPA) confirms reactions—high volume on moves shows conviction.
Key Fundamental Drivers of NZD
New Zealand’s economy relies on exports. This makes NZD sensitive:
- Dairy Exports: World’s largest exporter. Milk powder prices dominate. Strong Global Dairy Trade auctions boost NZD. Weak auctions pressure it.
- RBNZ Monetary Policy: Rate hikes attract capital—NZD strengthens. Cuts or dovish tone weaken it. Inflation and employment data influence decisions.
- Commodity Prices: Agriculture and soft commodities. China demand is crucial—major buyer.
- Risk Sentiment: Risk-on favors commodity currencies—NZD up. Risk-off boosts safe-havens—NZD down.
VPA spots conviction—high volume on NZD upmoves during positive data validates strength.
The Carry Trade and NZD
NZD often features in carry trades. Low-yield currencies (JPY) borrowed to buy high-yield NZD. Positive interest differential = carry profit. Long NZD/JPY popular in risk-on.
But unwinds fast in risk-off—yen surges. NZD/JPY plunges. VPA warns—low volume rallies signal fading carry support.
Quantum currency strength indicator ranks NZD in carry-friendly periods. Matrix shows yen crosses.
Trading NZD Fundamentals with VPA
Fundamentals drive direction. VPA confirms timing—high volume on moves validates conviction. Low volume reactions warn of traps. Quantum tools on MT5 or NinjaTrader rank NZD relationally. Trend Monitor aligns momentum.
Anna Coulling’s VPA approach turns Kiwi drivers into disciplined trades. Quantum indicators make spotting impacts reliable.
The Kiwi’s commodity and carry traits create opportunities. VPA with Quantum delivers the edge. Trade NZD with context and volume confirmation.
By Anna Coulling