© Dukascopy Bank SA
"The kiwi will probably move lower which keeps the fall since about three days ago going. We are getting closer to Fed tapering which is causing US dollar strength and the second thing driving it is the LVR restrictions which were announced this week."
- Westpac Banking Corp. (based on The New Zealand herald)
Pair's Outlook
Pair has been losing value even faster than it gained in the first two weeks of august. It seems to be successfully consolidating below the 78 cents and at the moment is supported by the 77.6/3 cent area. Short term technicals give bearish signals suggesting that some of that first part of August bullishness might be there. Medium term technicals, however, point at further depreciation of the pair. If 77.6 fails to stop the pair we could easily expect for it to trail to 76.8 cents. Short term rallies should be capped by the 78.6 cents.
Traders' Sentiment
The attitude towards the New Zealand Dollar is improving and there are more and more traders opening long positions on the currency. NZD/USD did not ignore this tendency, but rather is on its forefront—now the bulls are in the ascendancy there, taking up 58% of the market.
© Dukascopy Bank SA