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"We expect four rate hikes this year - one is April, but now we've got some questions around July if the Fonterra prices continue to weaken."
- NZ at ASB Instit (based on the New Zealand Herald)
Pair's Outlook
Through the end of yesterday's trading session and today we have seen a decline in NZD/USD as it has slipped below 0.8700 and later breached the weekly PP at 0.8627.
At the moment of writing the pair is trading around significant resistance (Monthly PP and weekly S1) at 0.8570/0.8558. The pair has fallen sharply already, therefore, we expect that it could consolidate around current trading level; although, a further selloff is possible.
Traders' Sentiment
The gap between the amounts of long and short positions open on NZD/USD has remained unchanged since the previous report – 29% and 71% respectively. In the meantime, the share of orders to enter the market with a buy trade added 12% and reached 47%.
© Dukascopy Bank SA