This pair has been in a massive bull rush for months, and there are absolutely no signs of it ending at the moment. The two economies are completely diverged, and with the recent tragedy in Japan, it is likely that the Japanese will be buying large amounts of construction materials. The biggest exporter of construction –related materials in the Pacific region? Australia.
Because of this, it just makes sense to buy the AUD over the NZD as the Kiwis have just had an earthquake of their own and had to cut rates. The 1.35 level is key, and as long as the pair remains above it – this pair is only a buy.
More March 15, 2011 Analysis:
