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### POV: KIWI SET TO CHALLENGE 0.73, COULD.....>

KIWI
KIWI: ### POV: KIWI SET TO CHALLENGE 0.73, COULD RETEST MARCH HIGHS
- As fears of a trade war between the US and China have subsided, NZDUSD could
be set to make a clean break of 0.73 and challenge the March highs of 0.7355.
- CFTC data released on Friday showed a substantial rise of 23k NZD longs,
pointing towards further topside gains.
- An improving commodity picture following reports earlier in the week that
China is looking to divert buying of semi conductors to the US from South Korea
and Taiwan, together with a softer USD could add to sentiment.
- From a technical view bulls now look for a close above 0.7315 to confirm a
break of the falling daily trend-line off February highs.
RISK - 1m and 3m risk reversals have dropped in the last few weeks, any falls in
equities ahead of month/quarter end could trigger fresh risk-off.

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