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The NZD/USD pair had a bullish five sessions this previous week as we broke above the 0.82 handle. This clears one of the major hurdles for the buyers in this market, and as such we think that eventually we will see higher prices. In fact, buying on pullbacks is our strategy currently and we think that the 0.85 handle will be approached fairly soon.
With the Federal Reserve announcing expanded and somewhat unlimited quantitative easing on Thursday, there could be no doubt that the commodity currencies will do well against the US dollar going forward. With this in mind, we will not sell this pair but would rather buy also the shorter-term charts based upon this weekly set up. Any pullbacks should be considered an invitation to buy the New Zealand dollar.