NZD/USD Dives on S&P Outlook Revision

Discussion in 'Forex' started by DannyBly1, Jan 13, 2009.

  1. 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.
  2. what's your opinion of where it goes from support? rally or break?