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"The RBNZ assumed third-quarter CPI inflation of 0.8% on quarter and 1.2% on year in the September monetary policy statement. A result on the high side of the RBNZ's forecast would reinforce the likelihood of a March 2014 cash rate increase, though the RBNZ does have some leeway to tolerate a higher result, given the New Zealand dollar is currently tracking ahead of its expectations."
- ASB Bank (based on The Wall Street Journal)
Pair's Outlook
Bulls continue to push the pair higher once it bounced from 0.822 yesterday. It is a bit to early to confidently state that the pair will definitely remain above 83 cent mark, but at the moment it seems so. It might hover around it as suggested by the short term technicals, but medium technicals point at the further recovery of the pair.
Traders' Sentiment
Market sentiment has been holding at the same level for the second day in a row now. Bears continue to hold 73% of all open positions on the pair. Majority of pending orders (64%) remain in favours of the bulls.
© Dukascopy Bank SA