NZD/USD Is Off To A Good Start This Week

NZD/USD has been falling for the last 2 months. NZD/USD has fallen more than 700 pips in the last 2 months. The NZ dollar is off to a good start this week, with the NZ elections providing the currency with a boost at the open. Over the weekend, the National Party won a resounding victory over its main rival, the Labour Party. The trigger for the downtrend in NZD/USD was the low dairy prices in the global market. New Zealand being a major dairy product exporter felt the pressure on its trade balance and as a result a strong pressure developed on NZD/USD which fell down more than 700 pips in 2 months. Now this does not mean we go bullish on NZD/USD. New Zealand economy is still facing the negative impact of falling commodity prices and still high exchange rate which means the downtrend is still there. NZD/USD can retrace before it starts falling again.