© Dukascopy Bank SA
"The New Zealand dollar remains overvalued and is higher than projected in March. Further appreciation has occurred partly in response to the announcement of a substantial quantitative easing programme in Japan."
- Reserve Bank of New Zealand (based on The Financial Times)
Pair's Outlook
Pair dipped to 0.835 where 55 and 100-day SMAs have sent it almost 100 pips up as at the moment it is testing 0.845. The mentioned level has been tested quite a few times in the last week and always unsuccessfully. Evidence that this time it might be different are rather scarce. Nor technical indicators nor market sentiment give strong indication about appreciation of the pair. It is more likely it will remain in the 0.835-0.845 range.
Traders' Sentiment
Now there are even more bearish on this currency pair traders than before. The share of those expecting further depreciation of the New Zealand Dollar has increased up to 73%, leaving advocates of a rally in the price in a distinct minority. As for the orders, 43% of traders are planning to enter the market with a buy trade.
© Dukascopy Bank SA