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Kiwi May Be a Safe Bet For Now

Posted by WorldWideMarkets . on Nov 7, 2013 3:47:00 AM

The kiwi is only up 1.5 percent against the dollar this year but consistently appears to be one of the better performers which anecdotally must imply strength. Strong employment data with an unemployment rate of 6.2 percent even as participation increased, has helped in recent days. The unemployment rate was the lowest in three years.

Add on that the Reserve Bank of New Zealand is expected to raise rates next year and the kiwi may be a relatively safe place to at least park funds. Bets come off when the Fed begins to taper but that seems far in the future. The kiwi has a 14-day relative strength index print of 63.874 and could go overbought but there does not appear at this point to be a lot of downside in the short term. A week into November, the kiwi is the best performing currency against the U.S. dollar of the 36 most actively traded units against the dollar.new zealand dollar resized 600

 

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