It will take more than one good New Zealand GDP print
The New Zealand dollar is the top performer this week and the yen the laggard. It’s the second week in a row of gains for the old carry trade pair. It was also the best week for this pair in a year as it gained 2.4%.
The weekly chart is showing a potential double bottom at 72.30, which was also the area of support in 2016 that led to a rip up to 83.00.
The big story here is that the mood on global growth has done a 180-degree turn since the start of the month and if that continues, NZD/JPY is a great place to stay and you can earn some positive carry while you’re waiting.