The rates continue in an upward trend, reaching their highest level since 2014. The Japanese yen remains under pressure from monetary policy and has no chance even against such a weak currency as the New Zealand dollar, which was deprived of the latest stimulus after the RBNZ left the policy rate unchanged, hinting at a pause in both the reduction and in raising rates. As a result, the rates began to depend mainly on external factors.
In October, we began to observe a significant increase in volatility on the chart. The rates tested support and resistance lines, seeking to expand the range. The Bank of Japan began seriously thinking about foreign exchange intervention to save the yen, as a result of which the fluctuations in favor of the JPY became significant.
Investors' focus this week remains on New Zealand's PMI and China's trade surplus, followed by China's GDP, inflation and New Zealand's trade surplus next week, so volatility could rise. We believe that the most effective will be the deals to SELL in the near future.
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