- Commerzbank (based on CNBC)
The New Zealand overperformed, as it soared beyond expectations yesterday. During the trading hours the Kiwi managed to reach the second resistance, but lacked the strength to trade around that level. As a result, the NZD/USD stabilised at0.7130, but with risks of falling back. Technical indicators keep giving bearish signs, while volatility already reached the weekly PP at 0.7089. Moreover, a possible resistance trend-line might force the pair to decline again, thus confirming the full-scale bearish trend.
Traders' outlook towards the Kiwi improved, as 39% of positions are now long (previously 38%). Buy commands are now in the majority, accounting for 53% of the market, compared to 36% yesterday.