NZD: Speculators to think twice about being long kiwi – ING

NZD/USD bounced back from its Reserve Bank of New Zealand (RBNZ) driven decline as US politics and lower global yields helped to lift the cross higher, points out the research team at ING.

Key Quotes

“July trade data (Wednesday) is the only significant domestic event to watch out for this week. After posting the highest quarterly export growth since 2010 in 2Q17, we look for a slight retrace this month. Risks of a larger trade deficit may weigh on NZD sentiment.”

“A quiet external environment could lend support to NZD carry plays, though we do think speculative investors are now likely to think twice about putting on long positions following the RBNZ's latest intervention warning. A neutral bias but look for NZD/USD to run into selling pressure in the 0.7350-0.7400 area.”