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| | Currency Forecast, NZD/USD, Currency Pair, Currency Trading, FXCM |
 | | The NZD’s performance this year proves to carry traders that they need to focus on growing interest rates rather than the absolute value of the interest rate. |
 | | Therefore in the first quarter, with the prospects of higher interest rates in Japan and signs of weakness in New Zealand prompting talk of an interest rate cut, traders that were long NZD/JPY for carry headed for the exit. |
 | | By the same token, there were also many investors long NZD against the US dollar for carry, but with the US also aggressively raising interest rates while New Zealand stood firm,, the shift in tone by the RBNZ, gave NZD/USD bulls a good reason to exit out of their own carry trades as well. |
| www.fxcm.com /currency-forecast-nzd-usd.jsp (1470 words) |
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