- Westpac (based on WBP Online)
As was anticipated, the Kiwi retreated from the Nov 2015 low and settled at 0.6473 on Thursday. However, risk-off trade prevailed on Friday, as concerns over China returned, causing another breach of the immediate support. The New Zealand currency is now under pressure, on the brink of falling under the 0.64 major level, with the nearest support cluster failing to limit the volatility. The next target is located around 0.6330, represented by the weekly S2 and the monthly S3, but a drop that low is doubtful, even though technical studies retain bearish signals.
Bullish traders' sentiment returned to its Wednesday's level of 74%, while three quarters (75%) of all pending orders are to sell the Kiwi.