© Dukascopy Bank SA
"If house prices don't respond to the new LVR limits then the Reserve Bank's OCR forecast will need to rise. That could push market interest rates higher and in that turn would push the kiwi US exchange rate higher. The higher the yield the more attractive the currency from a carry point of view."
- Westpac Banking Corp. (based on The New Zealand Herald)
Pair's Outlook
Pair's dip to 0.82 provided so needed impetus to advance to 0.83. At the moment it seems to be consolidating above the 20-day SMA which should keep the pair supported in the nearest future. Mild bullishness is indicated by the short term technicals as well. However, in order to uplift all of the downside pressure the pair should advance above the 0.837 and 0.843 after that. Dip below 0.815 could provoke and aggressive sell off to 79 cents where median expectation of major market participants is located.
Traders' Sentiment
No significant changes in the market sentiment can be observed today—only 28% of traders expect recovery of the pair. However, 62% of pending orders remain in the favour of the bulls.
© Dukascopy Bank SA