- UBS New Zealand (based on The New Zealand Herald)
Last Friday, the New Zealand Dollar sustained heavy losses, as the 2011 low failed to stop the fall. As a result, the Kiwi dropped to 0.7023, but closed trade slightly higher at 0.7045. Today we expect the NZD/USD pair to rebound, despite technical indicators retaining bearish signals. A small correction should occur, with the nearest resistance located at 0.7089, namely the weekly PP, but it is unlikely to be reached. The trading session is to end around 0.7057; however, we should not rule out the possibility of a drop to 0.70.
SWFX traders' sentiment weakened once more, as only 38% of all positions are long (previously 46%). The share of commands to acquire the Kiwi dropped from 56 to 36%.