NZD currency band already forecasted whereby the NZD-positive interest rate differential currency pairs (NZD/USD, NZD/CHF, NZD/JPY) move consistently to upward direction from lower currency band (disequilibrium trading zone) to upper currency band (equilibrium trading zone), and the NZD-negative interest rate differential currency pairs (EUR/NZD and GBP/NZD) move consistently to downward direction from upper currency band (disequilibrium trading zone) to lower currency band (equilibrium trading zone). AUD currency band also forecasted whereby the AUD-positive interest rate differential currency pairs (AUD/USD, AUD/CHF, AUD/JPY, AUD/CAD) move to upward direction from lower currency band (disequilibrium trading zone) to upper currency band (equilibrium trading zone), and the AUD-negative interest rate differential currency pairs (EUR/AUD and GBP/AUD) move to downward direction from upper currency band (disequilibrium trading zone) to lower currency band (equilibrium trading zone). In conclusion, both AUD and NZD currency bands move from "disequilibrium to equilibrium". As a result, AUD/NZD become range bound with tendency to downward direction.
EUR currency band already forecasted, whereby the EUR-positive interest rate differential currency pairs (EUR/USD, EUR/CHF, EUR/JPY, EUR/GBP and EUR/CAD) remains to be stabilized at lower currency band (disequilibrium trading zone) to wait until EUR-negative interest rate differential currency pairs (EUR/AND and EUR/NZD) to visit their lower currency band (equilibrium trading zone). This is inline to the performance of NZD and AUD-negative interest rate differential currency pairs as illustrated above. In conclusion, the EUR currency band needs to be stabilized at lower currency band before they are both (positive and negative) to move to upward direction with mixed performance (positive pairs from disequilibrium to equilibrium and negative pairs from equilibrium to disequilibrium).
Equilibrium Theory of Interest Rate Differential Interior the Interest Rate Differential Based Exchange Rate Targets and Currency Band Theory.
