New Zealand Dollar Rally has a Fighting Chance
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Trade Implications NZDUSD – The trading crowd first turned net-long the Kiwi as it traded below $0.8600, and positioning has been relatively consistent ever since. In fact the ratio of long to short positions remains almost exactly unchanged on the week. Yet clear signs of turnaround in the broader commodity bloc warn against selling aggressively into NZDUSD gains. We’ll need to see a renewed turn towards retail NZD-buying before calling for a resumption of the larger downtrend.
See next currency section: GBPJPY - Sterling Remains a Buy versus the Japanese Yen.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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