© Dukascopy Bank SA
"The strength in the Kiwi dollar relative to the US is a function of improved risk appetite globally. Last week equity markets ended on a strong note and this morning our currency simply followed that move. There was also some strong Chinese lending data released on Saturday. Today was the first chance the markets had to react to that, and that was another reason why Kiwi-US rose."
- Westpac (based on Radio NZ)
Pair's Outlook
Pair took a step back before a attempting to for new 2014 high. It seems reasonable to await a dip below the weekly PP/monthly R1 and await a rally after that. However, we think that at least some bearishness should be awaited around 0.8468. In case of an unexpected dip below 20, 55 and 100-day SMAs we might expect it to trail till 0.81.
Traders' Sentiment
Pair is continuing to demonstrate volatility in the distribution of pending orders as bullish side expanded by 15-40%, depending on the range, during the weekend after contracting by 25-30% on Friday; and bears continue to hold almost the same share, 29%, of open positions.
© Dukascopy Bank SA