AUD/NZD Continues to Rally
This daily chart of the AUD/NZD shows the difference in opinion about the Australian and New Zealand economies. While both countries have recently experienced tragic natural disasters that could result in a slowing economy, Australia has played down talk of another rate hike as New Zealand appears ready to at least talk about a rate cut. Since higher interest rates usually lead to a higher currency value and lower interest rates usually lead to a lower currency value, we see the AUD rallying and the NZD falling. The result is a new 18-year high for the AUD/NZD. I would continue to look for buys as long as the pair remains above the 1.31893 low noted on the chart.
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