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"Most of the market is expecting a positive outcome to be good for the kiwi on the basis it's good for risk sentiment. It will be interesting if the announcement is made on those days between Christmas and New Year, when markets are pretty thin - we could be in for a fairly volatile finish to the year."
- HiFX (based on TVNZ)
Pair's Outlook
Pair is continuing to depreciate after hitting the 15 month high at 0.8471. Recently it dipped as low as 0.8400, but it seems that this psychological level still carries a lot of weight and gives ground to believe the readings of technical indicators that pair might be up for another rally . Even if so, it should longer term outlook on the pair remains grim, with major market participants pointing to as low as 0.81.
Traders' Sentiment
Bearish moods in the market are holding steadily as 72% of traders continue being short on kiwi versus the greenback. It does not seem that it will change any time soon as pending orders on the pair are equally divided between short and long traders.
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