In this video:
00:31 Something that Forex Traders must be aware of
02:11 The New Zealand economy is looking strong
03:20 Important aspect of any business is to have a good leader
05:36 Free webinars every week
Hi, it’s Andrew Mitchem here the Forex Trading Coach, and in today’s video and podcast I want to talk about the state of the New Zealand economy and how it affects us as Forex Traders.
So let me share more with you right now!
The State of the New Zealand Economy
Hi, Andrew Mitchem here the Forex Trading Coach. Today is Friday, the 31st of January and that’s right I want to share some information with you about the New Zealand economy. Obviously it’s something that is close to me, living in New Zealand, but it’s just something as Forex Traders to be aware of. And I also want to relate that, to talk about our Prime Minister, Mr. John Key, who was an ex-Forex Trader. So you can see the story relates there to us as Forex Traders.
Well, obviously New Zealand’s a very small economy. But it’s actually one of the few countries and economies around the developed world that’s been through the recession, the recent recession, and has come out relatively unscathed. And it’s an amazing feat really when you consider the problems that the current government, the current National Government lead by John Key, faced when they took over from the Labor government.
You see they’d had huge budget deficits and we then had the Christchurch earthquake, which devastated the second largest city in New Zealand; and is still in recovery even today. Of course globally we’ve been through one of the biggest recessions since the 30’s. All that has been stacked against New Zealand when you consider that New Zealand is an export economy; relying on the export of most of our products that are made here, primarily agriculture goods. And all of that has occurred with the New Zealand dollar being at an historical very high level. So of course with the New Zealand being high, that’s actually bad for the exporters, because the amount of income that they produce is reduced, due to the increased value of the New Zealand dollar.
Likewise another one of New Zealand’s big industries is tourism, with many people wanting to come here to see the, all the amazing things that New Zealand has to offer. For people coming into New Zealand having the New Zealand dollar very high has meant that for them coming here, it means they actually get “less bang” for their buck; and they actually get less money coming into the country which makes it far more expensive to actually be here on holiday and to spend money here.
So two negatives there; in terms of bad news for the exporters and bad news for the tourism industry. However throughout all of that, the New Zealand economy has thrived. We've also just had some great news in terms of the employment statistics, the government now has the Country out of a budget deficit, which they promised to do when they first came into power. So putting all this together with the global recession and with the Christchurch earthquake it’s an amazing feat for such a small country, in just a few years. I put that largely down to our leader, and Mr. John Key, as I’d mentioned; is an ex-Forex Trader.
The Importance of Good Leader
Leadership in any business is critical and having the right leader in charge is such an important aspect of any business. I believe really that running a country is no different than running a company, it’s just that the company is a very large one that happens to be called New Zealand. You still need to be in charge of people and in charge of economics and the politics that go on behind the scenes. So I just think that we’re extremely lucky to have such a fantastic Prime Minister that not only runs the Country well in terms of day to day aspects such as the hospitals, the schools etc but also economically running the country extremely well and it’s quite a rare balance to get that, and so having someone with the caliber of John Key is just an amazing benefit for us; as a Country. Like I mentioned he used to be a Forex Trader. So there is a bit of a link there. So any of you Forex Traders watching this, or listening to this podcast, you know that’s how John Key started many years ago when he was over in New York.
Looking for some good Price Action next week
On the charts this week, well we’ve had a bit of a sideways movement for a lot of the week. It’s not been a particularly great week for trading in general and so now that the weeks almost finished, we're looking for next week to kick start into some better price action. I’ve heard some recently good traders, just that there’s nothing happening in terms of overall strength or weakness, particularly throughout the entire week.
Forex E-Book & Trading Webinars
Don’t forget to, make sure that you sign up to receive the weekly updates that I have for my eBook; it’s called “From Dairy Farmer to Forex Trader”. It shows my journey to becoming a profession Forex Trader and there’s a huge amount of tips and information and advice within that book that can really aide your own trading. Had some great feedback from people, just helping people because they’re at varies stages throughout their Forex career and their journey and they can see how I’ve been also at that same stage; and how I’ve overcome that. The steps I’ve taken to overcome that to get to where I am trading today.
Also don’t forget the free webinars that I’m holding each week, and if you haven’t downloaded the Lot Size Calculator yet, make sure you jump onto my website and do that. It’s a brilliant tool for helping keeping your money management with very low risk, and helping to control your emotions within your trading. The feedback from people that have used that Lot Size Calculator, you know most people that write back to me just say that it’s invaluable and now they trade using it, they can’t imagine trading without it. So it’s great that it’s helping people to progress within their trading.
So that’s all for now, this is Andrew Mitchem from the Forex Trading Coach. Look forward to talking to you this time, next week.