- Bancorp Treasury Services (based on The New Zealand Herald)
The NZD/USD currency pair experienced substantial volatility yesterday, but still managed to edge higher. Although the Kiwi overperformed and pierced the 0.66 major level, Tuesday's losses were not erased completely. The monthly PP was tested once more, thus, it is expected to cause the NZ Dollar to bounce back today, as the given PP prevented the pair from climbing higher since the beginning of the month. The potential close target is located around the weekly PP, while the 0.6550 level is more appealing.
Traders regained the positive outlook towards the Kiwi, as 55% of all positions are long today. Meanwhile, the portion of purchase orders also improved, rising from 23 to 63%.