For the simple related fundamental reason : currency devaluation.
One must remain structurally Bullish on Australian Dollar priced assets.
Single stock selection can prove challenging in such conditions, makes life
easier for the market to pick the winners.
Detailed Chart's to follow below -
Time for some NZD bulls in this currency pair.
Technically, in the daily chart, it is clear that a break out trade is in play. First, notice that support trend line break out on 15.09.2017, after that price corrected higher as a stochastic buy signal was printed after 02.10.2017. Between 19.10.2017 and 25.10.2017, there was congestion and a consolidation...
Strong bearish engulfing pattern is in place after two previous attempts of AUD appreciation and close above 89. This move down was accompanied by a stochastic sell signal and reducing momentum both in the daily and monthly chart.
In my opinion, price will continue to trend lower despite the easing expectations which is associated with Abenomics....