NZD/USD drifts away from 0.8489/53

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Absent the rebuild and perkiness across the housing market, the case for a lower cash rate would be solid. However, both present risks to the medium-term outlook for inflation. The odds remain tilted toward the next move being up as opposed to down."
- ANZ Bank New Zealand Ltd. (based on Bloomberg)


Pair's Outlook

NZD/USD slides downwards, while being underpinned by the 20-day SMA, contrary to signals sent by the technical studies lately. Nevertheless, if the dip develops, it will encounter serious levels at 0.8310/04 and 0.8261/39, trading below which is highly unlikely in the near future. If in the end daily and monthly signals prove to be true, then the closest notable cluster of resistances should be met at 0.8489/53.

Traders' Sentiment
Both the New Zealand and Australian Dollars are heavily sold in the SWFX market, as they are bought only in 30% and 27% of cases, accordingly. As a result, only 28% stay long on NZD/USD. However, the distribution between buy and sell orders is quite different—63% are in favour of the New Zealand and merely 37% are against it.
© Dukascopy Bank SA

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