NZD/USD: The Anchor Currency Pair and Trade Signals

NZD's purpose within G28 currency pairs is its the lowest exchange rate therefore NZD serves as the anchor currency. After the Fed releases daily interest rates every trading afternoon, the RBNZ is the first nation to factor its interest rates against Fed rates. All nations then follow RBNZ interest rates, particularly the RBA.

 

Closing Prices Highest to lowest

GBP/NZD 2.0129

GBP/AUD 1.9123

GBP/CAD 1.7157

EUR/NZD 1.7151

EUR/AUD 1.6291

EUR/CAD 1.4624

GBP/JPY 1.4155

USD/CAD 1.3273

GBP/USD 1.2926

GBP/CHF 1.2926

EUR/JPY 1.2061

EUR/CHF 1.1016

EUR/USD 1.1015

CHF/JPY 1.0951

USD/JPY 1.0948

AUD/NZD 1.0534

USD/CHF 0.9995

AUD/CAD 0.8980

NZD/CAD 0.8525

EUR/GBP 0.8519

CAD/JPY 0.8245

CAD/CHF 0.7534

AUD/JPY 0.7421

NZD/JPY 0.7046

AUD/CHF 0.6767

AUD/USD 0.6759

NZD/CHF 0.6423

NZD/USD 0.6417

 

Subtract Above pairs minus NZD/USD then Factor Mid Points

GBP/NZD – NZD/USD = 1.3273 = USD/CAD Close. As a reciprocal 0.7534 results in CAD/CHF close.

GBP/AUD – NZD/USD = 1.2770 = GBP/USD and GBP/CHF. As a reciprocal GBP/USD 1.2770 as a reciprocal results in USD/GBP 0.7840 and trades between CAD/CHF and CAD/JPY.

GBP/CAD -NZD/USD = 1.1787 No immediate association found however reciprocal to 1.1787 equates to 0.8483 and located between AUD/CAD, NZD/CAD and EUR/GBP. The number 0.8483 holds deep trade significance to NZD/CAD and EUR/GBP.

EUR/NZD – NZD/USD = 1.1787. Same number and significance as above.

EUR/CAD – NZD/USD = 1.0520 = AUD/NZD at a significant exchange rate. As a reciprocal AUD/NZD 1.0520 is actually 0.9505 NZD/AUD and trades between AUD/CAD and USD/CHF.

GBP/JPY – NZD/USD =1.0286 = Between USD/CHF and AUD/NZD. The number 1.0286 holds significance as CHF/USD and at the moment unrelated significantly to AUD/NZD.

GBP/JPY 141.55 – NZD/USD = 71.09 = NZD/JPY 0.7046. NZD/JPY not only closed at 0.7028 or 70.28 but 71.09 is a vital number to our weekly trade. Further, 0.7046 trades between AUD/JPY, AUD/CHF and AUD/USD. NZD/JPY 0.7046 as a reciprocal 1.4192 trades between GBP/JPY and EUR/CAD.

USD/CAD – NZD/USD =0.9845 = USD/CHF and CHF/USD as the reciprocal to 0.9845 equates to CHF/USD 1.0157.

GBP/USD – NZD/USD = 0.9671 Between USD/CHF and AUD/NZD however 0.9671 as a reciprocal 1.0340 equates more as a trade seignal to AUD/NZD.

GBP/CHF – NZD/USD 0.9671 = Between USD/CHF and AUD/NZD

EUR/JPY – NZD/USD =0.9239 between AUD/CAD and USD/CHF however 0.9239 as a reciprocal equates to 1.0923 as is more related to USD/JPY and CHF/JPY.

EUR/CHF – NZD/USD = 0.8716 = Between AUD/CAD, NZD/CAD and EUR/GBP.

EUR/USD – NZD/USD = 0.8716

CHF/JPY – NZD/USD = 0.8684 Between NZD/CAD, EUR/GBP and AUD/CAD.  As reciprocal holds significance also to CAD/NZD at 1.1515.

USD/JPY – NZD/USD = 0.8682 – Between NZD/CAD, EUR/GBP and AUD/CAD. Same as above.

AUD/NZD – NZD/USD = 0.8475 = Between CAD/JPY and EUR/GBP

USD/CHF – NZD/USD = 0.8206 = Between CAD/JPY and EUR/GBP. As reciprocal 1.2186 then bumps against GBP/USD and GBP/CHF territory.

AUD/CAD – NZD/USD = 0.7698 Between CAD/CHF and AUD/JPY. As reciprocal 1.2990 now bumps against USD/CAD.

NZD/CAD – NZD/USD = 0.7471 = Between CAD/CHF and AUD/JPY. As reciprocal 1.3386 now nears USD/CAD.

EUR/GBP – NZD/USD = 0.7468 = Between CAD/CHF and AUD/JPY. As reciprocal 1.3390 again bumps into USD/CAD territory.

CAD/JPY – NZD/USD = 0.7331 = Between AUD/JPY and NZD/JPY. As reciprocal 1.3640 reigns to USD/CAD and GBP/JPY.

CAD/CHF – NZD/USD = 0.6975 = Between NZD/JPY and AUD/CHF and AUD/USD. As reciprocal 1.4336 now bumps against EUR/CAD and GBP/JPY.

AUD/JPY – NZD/USD = 0.6919 = Between NZD/JPY, AUD/CHF and AUD/USD. As reciprocal 1.4452 also bumps against EUR/CAD and GBP/JPY. As reciprocal 1.4452 located between EUR/CAD and EUR/AUD but remains significant to GBP/JPY.

NZD/JPY – NZD/USD = 0.6731 = Between NZD/JPY, AUD/CHF and AUD/USD. As reciprocal 1.4856, same as above.

AUD/CHF – NZD/USD = 0.6592 = Between NZD/CHF and AUD/USD. As reciprocal 1.5169 located between EUR/CAD and EUR/AUD.

AUD/USD -NZD/USD = 0.6588= Between NZD/CHF and AUD/USD. Same as above.

NZD/CHF – NZD/USD = 0.6420 = NZD/USD. Same as above Vs reciprocal 1.5576.

 

Results

Exchange rate numbers contain deep associations and serve as valuable support and resistance levels against each other in a deeply self contained market. Currency price numbers meet supports and resistance at the next highest and lowest exchange rate numbers. Exchange rate numbers customarily cross above and  below the next currency.

The amount of actual and highly profitable trade signals offered above is not only quite astounding but a simple calculator is the only tool needed for profitable trading. Math in its most sophisticated and / or highly basic form eliminates in favor to understanding. If 70% of traders actually lose as stated then old dinosaur ways simply don't work nor worth repeating. 

GBP/JPY is clearly the most versatile currency pair among JPY cross pairs and GBP/JPY as GBP/JPY exchange rate allows for multiple insightful factors both as the stated price and movement of the decimal. USD/JPY nor any JPY cross pair allows GBP/JPY's versatility. The results to USD/JPY and other JPY cross pairs without decimal move lacks assistance to meaningful trade signals, understanding or insights.

GBP/JPY as an insight to NZD/JPY is truly perfect.

GBP/NZD minus NZD/USD contains a mid point at 0.6856. This means 24 of 28 currency pairs trade above and 4 pairs below as follows: AUD/USD, AUD/CHF and NZD/USD and NZD/CHF.

Al  28 currency pairs contain a mean of 1.1318 with inclusion of JPY re arranged but if USD/JPY is included as well as stated JPY cross pairs then the mean drops to 26.17. USD/JPY and JPY cross pairs are true market distortions as exchange rates lack proper representation and trade ability as stated prices.