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"Any further rate cuts by the RBA had already been priced out of the market and yesterday's release cemented that position."
- Bank of New Zealand (based on the New Zealand Herald)
Pair's Outlook
The kiwi performed well this week and set a new yearly high at 0.8745 yesterday. Since reaching the highest level in more than three years the pair has slipped lower and right now it is trading around the March high at 0.8696. In our opinion the New Zealand Dollar is overvalued and probably will slide towards the 20-day SMA and weekly PP at 0.8612/08. Nevertheless, a majority of technical indicators are bullish.
Traders' Sentiment
The bearish sentiment towards NZD/USD increased to the highest level in 12 days as it reached 75%. Concerning the orders placed 50 pips from the spot, there are now significantly more commands to sell – specifically 86%.
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