Part 2:
Here's the correlation chart for AUD/NZD. Interest rate differentials pretty much match the current spot price, so it's the Australian vs New Zealand stock market ratio that we're focusing on (blue line)
The chart shows a strong divergence between the exchange rate and the AU/NZ stock markets, which hints at the possibility of a stronger NZD in the coming period.
Here's the correlation chart for AUD/NZD. Interest rate differentials pretty much match the current spot price, so it's the Australian vs New Zealand stock market ratio that we're focusing on (blue line)
The chart shows a strong divergence between the exchange rate and the AU/NZ stock markets, which hints at the possibility of a stronger NZD in the coming period.
