It blows my mind that the New Zealand dollar is the best performer today, if you’d have told me stocks were absolutely taking, I’d be selling the kiwi. The New Zealand dollar is the carry trade.
It’s filled with long-term money seeking better bond returns. When trouble hits the money flies out of New Zealand and it can happen at breathtaking speeds.
Now, you can argue that much of that money has been flushed in the drop to 0.77 from 0.87 since July but in the past when real trouble has hit, the kiwi can fall very far, very fast.
NZDUSD weekly chart
This could be the bounce before the real fall?
