NZD/USD continues to decline

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The futures market is now taking off two rate hikes at the front end of the curve. The kiwi essentially was bought up on all those rate hikes and if you take half a per cent off you have got to consider its correction is appropriate for that."
- OMF (based on the New Zealand Herald)


Pair's Outlook
Today the Kiwi extended its decline and at the moment the pair is trading near the recent low (last week's at 0.8452). The New Zealand currency is on a down trend since the beginning of May. We expect the Kiwi's decline to stop or to slow down its pace around 0.84 as the pair has already lost more than 300 pips from this year's high (on May 6) at 0.8779. The daily technicals are bearish; however, the monthly technical indicators are bullish, thus 0.84 level seems reasonable for a changes in the current trend.

Traders' Sentiment
The portion of bears lost two percentage points, but still an overwhelming majority of traders expect further depreciation of the Kiwi, specifically 61% of them. The share of buy orders are at 59%.
© Dukascopy Bank SA

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