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"Our concern is the Canterbury rebuild will boost housing-related inflation, eventually forcing the Reserve Bank to increase the OCR. This story still looks very much on track."
-Westpac (based on The New Zealand Herald)
Pair's Outlook
For the past week pair has not spent much time below 0.8150 which suggests a presence of support area around there. At the moment pair is additionally supported by weekly pivot (PP) and is trying to advance above cluster of resistance levels at 0.8181/91. However, this scenario is unlikely as market sentiment and technical indicators point at increased downside risk for the pair.
Traders' Sentiment
For the past five days 2/3 of all positions on the pair are being held by bears. Taking in to account that 62% of all pending orders on the pair are to sell we should not see much of a change in market sentiment in the near future.
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