The NZD was the worst performer
If there’s one thing on the market in 2017, it is that he hates the political trouble and uncertainty.
An unlikely political coalition arose in New Zealand this week to mark the end of Bill English as Prime Minister. The good news for the new administration is that exports will get a boost to a lower New Zealand dollar.
The difficulty has been brewing for a few weeks, but it has really hit home this week with a 3% drop in NZD/USD.
At the other end of the spectrum is the U.S. dollar, which has never really suffers from politics because nothing ever really changes in the state of Washington. In Addition, the rules are different when you are the global financial crisis and military superpower.
The weakness of the NZD/USD has erased most of the gain in the kiwi, this year, with a trip back to the annual lows imminent.
The question is: What happens beyond that?
With the policy of the reaction tends to go beyond, if my conjecture is that, on an annual basis, the bottom-to be a buying opportunity, at least for a few weeks.