© Dukascopy Bank SA
"The currency is acting as a shock absorber, and I can't see it going too far while the RBNZ is actively reducing policy stimulus, increasing New Zealand's yield advantage compared to the rest of the world."
- ANZ Bank New Zealand (based on the New Zealand Herald)
Pair's Outlook
Yesterday the pair declined sharply by losing around 90 pips and its depreciation was slowed down by the major level at 0.8600 and later stopped by the weekly S1 at 0.8593. At the moment, the Kiwi is still trading around the weekly S1 and in our opinion it is poised for a further slide towards the monthly PP at 0.8570. Technical indicators are sending mixed signals, but we are still bearish.
Traders' Sentiment
The sentiment has not changed since yesterday and still only 28% of trader's expect New Zealand's Dollar to gain in value. Concerning the orders placed 100 pips from the spot, there are now slightly less commands to buy – 52%.
© Dukascopy Bank SA