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"Recent weakness in the kiwi has allowed the RBNZ to leave interest rates on hold because we're getting, to a certain extent, stimulus to the economy as a consequence of that. That's certainly supportive of the New Zealand dollar."
- Rochford Capital (based on Bloomberg)
Pair's Outlook
NZD/USD stepped higher today as investors expect a weak report of the US macroeconomic data. If bullish momentum to hold further, 0.7846 (61.80% Fibo) and 0.7906 (55-day ma) are likely to be the next targets among bearish market participants. A breakout of these levels would pave the way to the third resistance line at 0.7967 (R2 Weekly; 200-day ma).
Traders' Sentiment
Sentiment on NZD/USD remains slightly bullish as 58% of investors see the pair advancing further while 42% of traders stick to an opposite scenario. Within 100 points from the recent market price, the sentiment is bullish as 62% of market participants anticipate the Kiwi dollar to appreciate against the US dollar.
© Dukascopy Bank SA