Sunday, April 17, 2005

The 8 year cycle in NZ currency

There is an 8 year cycle in currencies, particularly relative to the New Zealand dollar. The US dollar takes the opposite extreme with other currencies in between.

The graph shows the present high in the Kiwi.

The violent stuff at the start was when the NZ$ was first floated free from government control.

A similar cycle exists in NZ terms of trade and in building activity. It probably starts from a primary produce cycle and flows through.

Ray Tomes


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