© Dukascopy Bank SA
"The impact of further CNY FX changes for other Asian currencies is more ambiguous. That said, the recent flurry of reform news out of China has helped boost Asian currencies and equities."
- Barclays Capital (based on CNBC)
Pair's Outlook
After continuous attempts the pair failed to advance above the November high and at the moment is eroding weekly PP/20-day SMA. We expect the pair to dip till weekly S1. Failure there would put November low on the map. In order to uplift most of this downside pressure the pair would have to advance above the November high. However, that would not eliminate the possibility of failure at weekly R2/monthly R1.
Traders' Sentiment
Opposite to the aussie, kiwi is the most sold currency across the board. As a consequence bears hold 70% of all open positions on the pair. 70$ of pending order, however, are set in favour of the bulls.
© Dukascopy Bank SA