- Graeme Wheeler, RBNZ (based on The New Zealand Herald)
Even though the NZD/USD tested the nearest resistance, the ultimate market reaction was to the downside. The New Zealand Dollar suffered heavy losses on Wednesday, as it erased this week's gains completely. On Thursday, we expect the Kiwi to extend losses, in spite of technical indicators giving bullish signals. The closest significant support is now located at 0.7528, namely the 55-day SMA, although such a large slump is unlikely. The pair is to end the trading session around 0.7580.
Bears are prevailing over bulls, as 73% of SWFX traders are short the Kiwi (previously 71%). The share of purchase orders lost three percentage points. The commands now take up 51% of the market.