Welcome to another AspireFX blog. Today we’ll be looking at the New Zealand Dollar versus the Japanese Yen. With the possibility of the Trans-Tasman Travel Bubble reopening soon since the 1990s, we could see a stronger Kiwi dollar in the next few months but up until then we could see more safe haven flows with this pair.
The Trans-Tasman Travel Bubble is an exclusive travel channel between New Zealand and Australia which will allow citizens to travel freely between the two countries. Most countries have struggled during this pandemic, especially countries like New Zealand who relies heavily on tourism in order to generate income. With tourism making up roughly 10% of their GDP, the travel channel would be a major step forward for the Kiwis.
On the 4 hour chart above we can see we had 3 touches on the ascending trend line before we had the break and retest indicated by the arrows. We can also see looking at the highlighted region that we had two wicks into 70.400 showing that there is a lot of selling pressure in that region.
On the 1 hour time frame we can that price is also rejecting the 61.8 currently as well as printing a double top shown by the downward pointing arrows.
The surge in coronavirus cases in Australia is causing uncertainty of whether their government will agree to opening up their borders to New Zealand. The deal is however still on the table and New Zealand is especially hopeful that an agreement can be made as soon as September.
Remember to always use the correct risk management and always stick to your personal trading plan! Hit the follow button to receive notifications of newly posted blogs sent directly to your email.