- FOMC member (based on MarketWatch)
Even though the New Zealand Dollar suffered losses yesterday, the fall was not as sharp as anticipated. During the trading session the Kiwi managed to reach the 0.71 psychological level, but stabalised higher at 0.7125. Technical indicators keep showing bearish signals, suggesting further weakness. As a result, the NZ Dollar is likely to pierce through the 2011 low again today and, possibly, stretch out to the 0.70 psychological level. If a plunge to 0.70 occurs, we might see the Kiwi drop to the August 2010 low within a week's time.
Bears keep prevailing over bulls, although 46% of traders are now long the Kiwi (previously 44%). The number of buy commands also increased. They now account for 56% of the market (up from 48%).