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"They're most likely going to be raising rates another 25 basis points and that makes the kiwi look relatively attractive."
- HiFX (based on Scoop Business)
Pair's Outlook
Last week we saw some major movements, but at the end of the week it was trading basically at the same level where it started. Right now NZD/USD has consolidated around 2013 Q1 and Q4 highs at 0.8533/43 respectively. The pair is well supported, therefore some appreciation towards 0.8600 is possible; however, we remain bearish on this pair. Even if it will gain slightly we see it falling towards 20-day SMA at 0.8491 right after that.
Traders' Sentiment
Although there are relatively less people than on Friday expecting the Kiwi to depreciate, it is still an overwhelming majority (72%). Concerning the orders placed 100 pips from the spot, there are now significantly more commands to buy – 45% after Friday's 4%.
© Dukascopy Bank SA