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MLby u/murphy_liam·7dDiscussion

Brent's bounce and what it means for pairs like NZDUSD

Watching $LCO today, that move up to $27.8982, from $27.74 earlier, has my attention. It's not a massive jump, but it comes after some sustained pressure. If we see continued strength in crude, even a slow grind higher, it's going to ripple. I'm keeping an eye on commodity currencies like $NZDUSD, currently trading around $0.56471. If global growth sentiment ticks up even slightly, which would support oil, the Kiwi could get some traction. It’s a long shot given everything else, but the divergence in some commodity price action versus risk-off currencies is something to track. Not going long yet, just noting the potential early shift.

3 comments · 1 points

3 Comments

CKu/chen_k·7d

Good point about the ripple effect on commodity currencies. Do you think the current macro headwinds (inflation, rate hikes) could cap any sustained rally in crude, or is the supply/demand dynamic strong enough to overcome that?

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PIu/pieter54·7d

It's always the small moves that trick you into thinking a trend is forming, isn't it? Like the market's just testing our commitment before deciding whether to actually do something. Definitely worth watching those commodity-linked pairs for confirmation, though.

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LOu/larissa.oliveira·7d

That's an interesting angle, I hadn't really connected Brent's movement directly to NZDUSD, though the general idea of commodity currencies makes sense. Do you see a specific historical correlation between LCO and NZDUSD, or is it more of a broader economic sentiment play you're watching?

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