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"The broad message from the FOMC minutes is that the FOMC was happy with market pricing and the pace of the US recovery. That means the post-meeting reaction in rates (bringing forward hikes) needed to be unwound."
- ANZ Bank New Zealand (based on the New Zealand Herald)
Pair's Outlook
The pair has set new more than a three year high again at 0.8745, after yesterday's rally. However, once this level was reached the pair slipped to weekly R1 at 0.8703 as the resistance level at 0.8750 was to serious obstacle. Despite the fact that a majority of technical indicators suggest that Kiwi's value will rise against the greenback we see it weakening towards weekly PP and 20-day SMA at 0.8608/07.
Traders' Sentiment
A significant majority of traders stay pessimistic with respect to the New Zealand Dollar. Right now as many as 73% of them expect it to lose value against the U.S. Dollar. Bullish side of pending orders, placed 50 pips form the spot, decreased by 10% and is at 45% today.
© Dukascopy Bank SA