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NZD/USD closing in on Aug 2010 low

© Dukascopy Bank SA
"The decision by the Reserve Bank of New Zealand (RBNZ) to cut rates to 3.25% leaves our prediction that rates will be 3.0% by the end of the year on track and has helped achieve one of our other forecasts, namely a weakening in the New Zealand dollar to US$0.70." 
- Capital Economics (based on WBP Online)


Pair's Outlook 
On Thursday, the New Zealand Dollar suffered losses against its American counterpart, but not as severe as forecasted. The immediate support cluster managed to stop the NZD/USD pair from falling deeper, but the Kiwi still stabilised a lot higher, above the 0.70 major level. Nonetheless, the New Zealand currency is expected to decline for the third consecutive day and reach the lowest level at 0.6948 in almost five years. Meanwhile, technical indicators keep giving bearish signs, also suggesting more weakness. 

Traders' Sentiment 
Market sentiment remains unchanged, with only 44% of all positions being long. The number of purchase orders added five percentage points; the commands now account for 34% of the market.
© Dukascopy Bank SA


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