Source: WarkworthWeb.co.nz – Media Release
Headline: NZD Shines After a 6%+ Rise in the WTI Oil Prices.
Earlier this week the equity markets continued to rejoice over a much-need financial comeback after the West Texas Intermediate (WTI) Oil experienced a rise of over 6% on its pricing. Higher equity leads were seen on several commodity-related industries in the United States and on most of the financial industry in the Eurozone.
This pricing rise in oil bears good news to all commodity-linked currencies around the world. The Canadian dollar (CAD), Norwegian krone (NOK), Australian dollar (AUD), New Zealand dollar (NZD), and Russian ruble (RUB) all presented outstanding positions in the foreign exchange market. Inversely, currencies considered as “safe refuge” could not shine as much. The Japanese yen (JPY) and the Swiss franc (CHF) suffered from a strong loss of interest from most currency investors, as they turned their attention towards the more appealing commodity-related currencies.
The British pound had a more interesting outcome, mostly shaken up by the UK Employment Report released earlier this week. Investors are still a bit confused about those numbers and are mostly unsure whether to focus on the increase of gross earning numbers or in the rise of the unemployment rate. However, after all of the dust finally settled, the GBP saw a slight increase when paired against the US dollar (USD).
Definitely, the biggest winners after the oil price rise are the Australian dollar (AUD) and the New Zealand dollar (NZD). Both experienced stronger positions in the foreign exchange market when paired against the US dollar (USD). New Zealand’s specific commodities, especially dairy, will continue to have a dominant pull over the New Zealand dollar (NZD) for the remaining of the year.
Foreign exchange investors should duly note, however, that a strong trough is expected to hit the NZD/USD currency pair at some point over this current year, as low as 0.6000. On a shorter term, resistances are expected to average on 0.6680 while supports will most likely be around 0.6500. This information is especially useful for day traders or people who operate on margin trading.
Current Events and their Effect on Market Predictions.
For those readers who are not completely soaked with all the financial terminology and market dynamics yet, it might seem like these current events are a little unconnected to the fate foreign currencies will face in the future. But the truth is everything is connected, even the smallest and seemingly unimportant events will have an impact on the overall market pricing fluctuations.
Pricing variations in commodities, government reports, climate change, weather forecasts, agronomical harvest results, social movements, wars, natural disasters, they will all play an important role into how the market will behave. Some of these effects will be immediate, others will just be seen in the longer run, but they will all be present at some point.
Understanding how these current events affect our local and global economy is a huge step towards beginning an investing career. For example, enthusiasts of the foreign exchange market who, as of yet, do not own any kind of investment portfolio should most definitely take a look at one of the leading online trading platforms available in the industry, CMC Markets.
Day trading itself can be a part-time activity where you can place every piece of knowledge you acquire along the way, into smart and factual-based trading decisions. Not a whole lot of investment capital is needed and, on a majority of platforms, all investors are given the chance to simulate these trading operations in a virtual environment with real-life market scenarios, without actually investing any real money yet. Once investors have seen how the market works, and how their decision played out, they can venture into real trading as well. All of the information is out there for everyone to reach, and in using this information correctly, great opportunities arise.