NZ$ Index

[Hoop]

Strange as it may seem there doesn't to be an existing thread...

Because we are mainly focused on what the media tells us..eg the rising of the NZ$ near parity with A$, the increasing NZ$ value over the Sterling and EURO, and the Reserve Bank telling us the NZ$ is well overvalued, we are left with the feeling that in general the NZ$ overall trend is bullish and rising...but with closer inspection its not true as NZ$ has fallen very significantly..surprised? personally I was surprised as to the magnitude of the fall since last August...

The problem with currency wars is the devaluation can be nullified when the trading partners currency lower at the same time..

The assumption from the NZ$ index chart would be that when we are told that the NZ$ is appreciating against the EURO and $A it means those currencies have been falling faster than the NZ$

As we investors are dealing with variables the situation can change quickly as the chart shows the NZ$ has broken support on the 20th January and yesterdays NZ$ large drop (yesterday is not shown on the chart) against most currencies except Canadian and Aussi is now much easier to explain why...The investor perception is these Commodity export countries are starting to feel pain....

As a strong currency usually reflects a strong economy, does this NZ$ index chart give the investor some sort of advanced warning that the NZ Ecomony has peaked and this Economic Rockstar ship could be heading towards the rocks?...you decide...

EDIT:...The NZ Index chart (from Stockcharts) looks very familar to that of the NZ$/US$ chart...