© Dukascopy Bank SA
"Offshore fund managers put on some of their bets for the year in the first week in January, so obviously long kiwi short Aussie is still going to be the preferred trade at this stage."
- ASB Bank (based on Radio New Zealand)
Pair's Outlook
Pair is consolidating recent gains, but is showing slight bullishness which allows us to believe that 0.8333/49 area will be tested soon. Solid close above it seems likely, but we do no think the pair could advance above the 0.8416/42 anytime soon. In case of a failure the pair might dip as low as 0.8150, but should stall at 100-day SMA in such case.
Traders' Sentiment
No significant changes in the market sentiment were registered since yesterday. Bears continue to hold overwhelming majority (71%) of open positions and bullish pending orders are at 60% level today.
© Dukascopy Bank SA