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- Graeme Wheeler, RBNZ (based on The New Zealand Herald)
Pair's Outlook
There New Zealand Dollar brought no surprises on Wednesday, as the NZD/USD currency slumped again after testing the 0.64 level. As anticipated, the breach of the 0.63 area also triggered further declines, which erased all weekly gains. The RBNZ's interest rate cut today caused the Kiwi to edge higher and those gains are likely to last through the day. The weekly pivot point is now providing resistance again, although the NZ Dollar is expected to slow down and possibly even decline against the Greenback, as the RBNZ still believes that the NZD remains overvalued.
Traders' Sentiment
Market sentiment remains bearish, but at 60% (previously 67%). Three quarters of all orders are to sell the Kiwi, down from 84%.
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