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Shorts Squeezed

KIWI

NZD/USD snapped into life on Wednesday after lulling participants into a false sense of security in recent sessions, with the broader USD weakness and strength in U.S. equites exposing the short positioning evident in the NZD, which has built on the back the recent RBNZ guidance. Cross last trades +15 pips at $0.6636, benefitting further from the latest downtick in the USD and aforementioned short positioning combination.

  • After closing above the 21-DMA bulls now look to force their way through the Aug 19 high at $0.6651, which would open the way to $0.6691, the Aug 7 high.
  • Broader market flows and headlines set to drive price action in Asia-Pac hours given the lack of NZD local risk on the docket.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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