Based on Australia's weak GDP numbers, I think the Aussie could fall back to parity in the short-term.
It is a significant factor in KZL's ability to return to profitability as are stable zinc & copper prices.
The AUD looks to have entered into a longer-term downtrend, party because of continued strength in the US, offset by weakness in Europe.
If you look at Feb you can see a bit of a head & shoulders pattern forming as 1.08/1.09 was tested and not broken through twice. The longer-term high of $1.11 looks increasingly out of reach, as the AUD look over-valued when considering it's position relevant to the MA 200. I'd expect to see it fall further to the $1-$1.02 region, possibly lower, as the RBA contemplates a possible interest rate cut or cut(s) to stimulate economic growth.
KZL Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
