NZD/USD Dives on S&P Outlook Revision

dannybly · #1 (**permalink**) 01-13-2009, 02:15 PM

NZD/USD dropped 4% after Standard & Poor revised it's currency credit rating from 'stable' to 'negative'.

The New Zealand dollar's base interest rate of 5% makes it a popular carry trade currency. It is also regarded as a commodity currency, known for it's close correlation to gold.

As the daily chart shows, NZD/USD retraced 50% from it's recent low, where a double bottom in the 0.5194 area forms support.

yenxforever · #2 (**permalink**) 01-17-2009, 08:52 AM

Im basing trades on a weak dollar. Im looking to go long foreign currencies Such as nzd/usd. I believe that the dollar will ultimatly continue down, which will help the yen and the franc. But how much upside is there in the nzd/usd. What are some risks that maybe I haven`t thought of? Anybody?

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