- TD Securities (based on CNBC)
The NZD/USD pair overperformed, as the NZ Dollar managed to almost erase Monday's losses completely. The 0.74 level was crossed and the Kiwi stabilised just over the monthly S1. Even though the pair stretched as far as the weekly S1, the NZ Dollar managed to get back on track, while further rally is expected today. The nearest resistance is located at 0.7470, represented by the weekly PP. However, we should not rule out a slump back under 0.74, as technical indicators retain bearish signals.
Market sentiment weakened again, with only 30% of traders being long the Kiwi, compared to 32% yesterday. At the same time, the share of purchase orders increased from 52 to 59%.