© Dukascopy Bank SA
"The slowdown in inflation gives China room to cut interest rates more. China's economy is likely to support the Australian and New Zealand currencies based on the scenario that it will rebound in the second half of this year."
- Tokai Tokyo (based on Bloomberg)
Pair's Outlook
The Kiwi dollar moved slightly lower against the US dollar and currently the pair is flirting with 200-day simple moving average. However, if bearish impetus adds to gains, investors might face 0.7922 (S1 Weekly) as their first support level. A breakout here would expose 0.7886 (50% Fibo) and 0.7812 (Lower Bollinger band) for bearish market participants.
Traders' Sentiment
Sentiment on NZD/USD remains slightly bullish as 55% of investors see the pair advancing further while 45% of traders stick to an opposite scenario. 100 points from the recent market price, the sentiment is bullish as 67% of market participants anticipate the Kiwi dollar to appreciate against the US dollar whereas 33% of traders expect the pair to decline.
© Dukascopy Bank SA