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14 Jun 2013
Flash: NZD/USD may have bottomed out – BNZ
FXstreet.com (New York) - Last week’s US payrolls report proved sufficient for the NZD/USD to break below key support around 0.7940.
However, According to the BNZ Research Team, “The crucial 0.7800 level is proving harder to crack. Overall, the US report entrenched the market’s view that the US Fed is steadily progressing toward ‘tapering’ QE later this year, as the US economy gradually heals.”
General risk appetite conspires against NZD recovery
Broad sentiment toward the USD and general risk appetite will, as ever, remain an important determinant of the NZD/USD. “Though ultimately we would caution against now extrapolating recent NZD weakness too far. The most recent IMM speculative positioning data show net long positions in the NZD have plummeted.” the team adds. In addition, AUD net short positioning has extended to an historical extreme. Such moves often portend a subsequent rebound in the currency.
However, According to the BNZ Research Team, “The crucial 0.7800 level is proving harder to crack. Overall, the US report entrenched the market’s view that the US Fed is steadily progressing toward ‘tapering’ QE later this year, as the US economy gradually heals.”
General risk appetite conspires against NZD recovery
Broad sentiment toward the USD and general risk appetite will, as ever, remain an important determinant of the NZD/USD. “Though ultimately we would caution against now extrapolating recent NZD weakness too far. The most recent IMM speculative positioning data show net long positions in the NZD have plummeted.” the team adds. In addition, AUD net short positioning has extended to an historical extreme. Such moves often portend a subsequent rebound in the currency.