© Dukascopy Bank SA
- BK Asset Management (based on The New Zealand Herald)
Pair's Outlook
The NZ Dollar remained muted against the US currency on Tuesday in anticipation of the RBNZ meeting today. The RBNZ is expected to cut its interest rate for the fourth time this year, which should lead to the NZD weakness today. A number of important levels are supporting the Kiwi around the 0.66 major level, but a slump towards the 100-day SMA around 0.6545 is also possible. In case the interest rates remain flat, we could see a breach of the weekly PP at 0.6681, with a chance of Monday's losses getting erased.
Traders' Sentiment
Bulls are now in the majority, as 53% of all traders are long the Kiwi, compared to 41% yesterday. Meanwhile, the number of orders to buy the New Zealand currency increased from 47 to 60%.
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