NZD: The NZD index is at 4, having increased from 0. We wrote last week that “speculators are net short the largest amount of NZD that we have on record (the record only goes back a few years though).
Given the lack of historical positioning data for NZD, there is little confidence in the numbers.” Despite our reservations, the NZDUSD has rallied. Expect the rally to continue.
Implications: bullish