- Bank of New Zealand(based on The New Zealand Herald)
Even though the Kiwi reached 0.7740 yesterday, the trading session still ended with the NZD/USD pair falling down. The worst-case scenario was not confirmed, as the NZ Dollar lost only 29 pips. As for Thursday, we expect the New Zealand Dollar to slump again, despite bullish technical indicators. The initial support, namely the weekly PP, is unlikely to prevent the fall. Therefore, the second support around 0.7587 might act as a solid obstacle; however, the strongest cluster lies around 0.7505.
Market sentiment weakened, as the portion of longs retreated to its Tuesday's level of 27%. At the same time, the portion of purchase orders increased from 47 to 70%.