© Dukascopy Bank SA
"If the US does hit the debt ceiling and the worst case scenario is realised you could see a substantially weaker US dollar which could push the New Zealand dollar a lot higher."
- Bancorp Treasury (based on The New Zealand Herald)
Pair's Outlook
Kiwi-greenback cross is continuing to appreciate and at the moment is aiming at the September high. We should expect some bearishness around this level, but we think that overall trend should remain bullish for the time being. However, in case it fails at 0.843, it would put 0.825 on the map. This level kept the pair supported for more than 3 weeks. Dip below it, could send the pair trailing to 0.81.
Traders' Sentiment
Kiwi is still one of the most sold major currency across the board which weighs heavy on it's sentiment with the greenback. Traders remain strongly bearish on the pair with 73% of all open positions being short on the pair. Distribution of pending orders remains at 64% of it being set in favour of the bulls.
© Dukascopy Bank SA