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"Combined with the previously reported low inflation print for Q3, the RBNZ may consider further cuts to the already low cash rate and NZD intervention may also be a consideration"
- HSBC (based on Reuters)Pair's Outlook
Yesterday NZD/USD demonstrated untypical for itself volatility by plummeting 78 pips. Moreover, today the dip is being extended as well, since none of the nearest supports were capable of negating perseverance of bears. Still, the price is expected to be underpinned by a cluster of support lines at 0.8139/25 and commence a recovery from there. If this is not the case, then demand is anticipated to be boosted near 0.8101/0.8081 or 0.8039.
Traders' Sentiment
An overwhelming majority of market participants (72%) remain bearish on NZD/USD and it appears that the assumptions of most traders, who foresaw a dip, were correct with respect to price action. Besides, 61% of orders are to sell the kiwi and 39% of them are to acquire it.
© Dukascopy Bank SA