© Dukascopy Bank SA
"The expectation that the Reserve Bank of Australia may have to cut rates and that the Reserve Bank of New Zealand wants to hike rates in New Zealand is all that is driving. The yield curve is the key driver - the money goes where it can get the best return."
- ASB Bank (based on TVNZ)
Pair's Outlook
Pair continued to trail lower after a failure at the weekly R1/20-day SMA and at the moment has neutralised almost all of this week's losses. We expect that 200-day SMA will provide enough support and will stop the pair's fall. However, it is unlikely that would ignite a rally. In case of a dip below the 200-day SMA the pair should test weekly S1 shortly.
Traders' Sentiment
Bullish side of traders contracted further. At the moment they account only for 29%, which is 5% less than yesterday, of all traders. Bullish side of pending orders is also lagging behind—it is at 46% level today.
© Dukascopy Bank SA