"It's difficult to argue that the kiwi should be stronger given that we expect growth to tail off this year."
— David Croy, ANZ Bank New Zealand (based on New Zealand Herald)
Pair's Outlook
During the first half of Monday's trading session the Kiwi was in a retreat against the US Dollar. However, the situation was far better for the Kiwi, as it might seem initially. First of all the pair started the day's trading session almost at 0.7050 and scored a new high of 0.7055 before encountering resistance. It encountered the upper Bollinger band, which managed to initiate a decline. It is most likely that the pair will fund support near the 0.7025 level, where the weekly PP is located at. Although, traders should beware of another show of weakness from the pair before a surge.
Traders' Sentiment
SWFX market is bullish regarding the Kiwi, as 61% of open positions are long, and 54% of pending commands are to buy.
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