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"It's a small negative for the Aussie in that the RBA was willing to resume even the mildest jawboning."
- Westpac Banking Corp. (based on Bloomberg)
Pair's Outlook
Today NZD/USD reached resistance line at 0.84 and was not able to break this level after minor movement yesterday. Daily indicators support pair's further advance; however, it might be psychologically hard to breach 0.84 level. We expect continuous attacks on that level and once it is breached the pair most likely will head for this year high/weekly R1 at 0.8431/0.8436. After this bullish movement we could see a decline towards 20-day SMA.
Traders' Sentiment
The majority of the SWFX traders are staying bearish on NZD/USD (74%). At the same time, the sell orders placed are losing their positions from yesterday as they have fallen from 76% to about 60% today.
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