"Higher inflation and a better dairy auction should be helping the kiwi."
— Imre Speizer, Westpac Banking Corp. (based on New Zealand Herald)
Pair's Outlook
On Tuesday the New Zealand Dollar traded against the US Dollar between two levels of significance above the 0.70 level. Initially the pair found support in the 20-day SMA, which was located at the 0.7002 level. By the middle of the day the currency pair had broken through the resistance put up by the monthly PP at 0.7033 mark. If the surge continues, the rate will reach the first weekly resistance, which is located at the 0.7051 level. However, if the Greenback recovers its strength against the Kiwi, the rate will be bound to retreat to the 20-day SMA once more.
Traders' Sentiment
SWFX traders remain bullish, as 57% of open positions are long on Tuesday. However, 54% of pending commands are to sell the Kiwi.
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