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- Commonwealth Bank (based on CNBC)
Pair's Outlook
As a commodity currency, the New Zealand Dollar suffered from Monday's oil price slump, thus, edging lower against the US currency. The immediate support was breached, but the second target remained intact, with the pair determined to test that area today. The immediate cluster of supports is rather strong and could cause the NZD/USD to rebound, as technical studies suggest; the Buck requires a substantial boost in order to push pair down through this cluster. The base case scenario, however, is another loss, with an effort of trade closing near the 0.66 psychological level.
Traders' Sentiment
Traders' sentiment improved, but remains bearish at 59%. Meanwhile, the share of purchase orders increased from 27 to 47%.
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