- Rankin Treasury Advisory (based on The New Zealand Herald)
The New Zealand Dollar appreciated against the Greenback for the fifth day in a row last Friday. Although the NZD/USD reached the 0.67 major level, the pair failed to resume trade above it and closed at 0.6680 instead. The Kiwi is expected to bounce back and suffer losses today, amid more concerns over China. As a result, the NZ Dollar is likely to fall under 0.66, as the nearest significant support rests only around 0.6581, namely the 20-day SMA. Meanwhile, technical studies are giving bullish signals, contradicting with the forecast and suggesting the pair is to rally on Monday.
Bears keep growing stronger as 59% of all positions are short today. At the same time, the share of buy orders increased from 29 to 54%.