Kiwi Correction On The Cards In 2014
The New Zealand dollar has had a great run since early September on the back of improving global risk sentiment, and the upswing in speculative positioning suggests that there is potential for further near-term gains. Indeed, we believe that there is room for another leg up for the kiwi, although we expect that potential resistance in the region of US$0.8600-0.8800/NZD will prove difficult to overcome. Looking further ahead, any additional short-term strength will eventually give way to the fundamental downside pressures that remain firmly in place.
|How Long Will Positive Sentiment Last?|
|New Zealand - Exchange Rate, US$/NZD|