© Dukascopy Bank SA
" ... nobody really [knows] what US politicians are going to come up with. The big risk to the kiwi is the US entering a technical default [wherein] the US dollar would suffer but the kiwi would suffer more. In fact the kiwi would probably underperform every major currency given its high-risk status."
- BNZ (based on The New Zealand Herald)
Pair's Outlook
Pair is continuing to appreciate after bouncing from the weekly PP/20-day SMA. At the moment it is trying to advance above the September high. If it manages to do so, the pair should advance above 0.849 in orders to minimize the possibility of a pullback. In case the pair fails at the September high, we do not expect that it will drift much lower. It should hover above 0.837 at least for some time.
Traders' Sentiment
Kiwi remains one of the most sold major currencies across the board and greenback is being bought in 60%n of all of the cases. This explains clearly bearish (73%) market sentiment. Majority (65%) of pending orders, however, remains in favour of the bulls suggesting that we could see a major shift in market sentiment soon.
© Dukascopy Bank SA