- ANZ Bank New Zealand (based on The New Zealand Herald)
Even though the New Zealand Dollar did decline yesterday, actual losses were heavier than anticipated. The Kiwi tested the 2010 low at 0.6559, but settled slightly above at 0.6570. Daily technical studies retain their bearish signals today, suggesting the Kiwi is to sustain more losses. The bottom line for the NZD/USD is the point where the lower channel boundary coincides with the weekly S3, but the pair will doubtfully cross the 0.65 psychological level. Furthermore, a rather strong support cluster lies around 0.6545, which could cause the NZ Dollar to close near the area by day's end.
Bulls retreated, as only 59% of all positions are now long (previously 71%), while the share of buy orders edged lower from 49 to 45%.