from Chuck Butler, Daily Pfennig:
Despite sharing its nickname with the native flightless bird, the New Zealand dollar has been anything but grounded since the end of the 2008 U.S. financial crisis. Similar to many emerging market currencies, the New Zealand dollar, or Kiwi as it is known to traders, burrowed for refuge during the U.S. credit financial crisis as global markets took shelter in the relative safety of U.S. dollar holdings.
Notwithstanding a brief setback after the devastating 2011 Christchurch Earthquake in the populous Canterbury region of New Zealand, the kiwi has leveraged strength from its exporting commodities and domestic consumption to steadily gain against the U.S. dollar since 2009. (Figure #1) The question, of course, is whether the New Zealand dollar can take the strength of its rugged topography and hardy people to buck recent strength from the U.S. dollar. This month’s Currency of the Month looks at the fundamentals and value in one of the more interesting emerging market currencies, the New Zealand dollar.
Please follow SGT Report on Twitter & help share the message.