3
MLby u/murphy_liam·1moDiscussion

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 · 3 points

3 Comments

LOu/larissa.oliveira·1mo

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?

7
CKu/chen_kThailand·1mo

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?

0
PIu/pieter54·1mo

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.

-1

More like this