NZD/USD: shallow rebound

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"USD gains make a June rate hike less likely in our view, but a bottoming in core inflation by Q2 and continued absorption of excess capacity are still expected to see the Fed hike in September." 
- BNP Paribas (based on WBP Online)

Pair's Outlook 
The New Zealand Dollar tumbled down on Friday, but not as much as expected. The pair failed to reach the closest support level and ended the trading day at 0.7336. The Greenback is still considered bullish, thus NZD/USD is likely to extend the recent losses, though demand at 0.7286 has already proven to be strong. The technical indicators are bolstering the bearish outcome, as the aggregate arrow on the daily time-frame is pointing in the south-ish direction. 

Traders' Sentiment 
The negative market sentiment is as strong as on Friday, since 73% of open positions are short. At the same time, the gap between the buy and sell orders widened, as now 29% of all orders are set to buy and the remaining 71% are set to sell the Kiwi.
© Dukascopy Bank SA

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