- Citi (based on Reuters)
On Monday, the better-than-expected New Zealand fundamentals boosted the Kiwi. As a result, the NZ Dollar remained above the 0.73 psychological level, but was unable to surge above 0.7320. A small hike after falling for several days only confirms the bearish pattern, which the pair has been following for the past month. Moreover, technical indicators keep giving bearish signals, suggesting that the NZD/USD today's decline will compensate for yesterday's rally. The Bollinger band has shifted lower, now bolstering the support cluster around 0.7230.
Bulls retreated, as only 54% of traders now hold long positions, whereas, the number of purchase orders increased from 43 to 59%.