NEW ZEALAND DOLLAR SET FOR A BOUNCE - EXTREMELY OVERSOLD
Kiwi Dollar has suffered a lot from:
-RBNZ rate cut
-China stock bubble implosion
-Global equity risk off fueled by Greek and Chinese crisis, hurting high yield currencies
From a fundamental perspective, on the following weeks:
-Greek debt crisis will be solved
-Chinese stock crisis will stabilize as PBOC has been cutting rates and is ready to intervene directly on stock markets and cut even more rates
-Chinese rate cuts should give some fresh air to AUD$ and NZD$
And from a technical perspective it's really difficult to see Kiwi to suffer more selling. Extremely oversold.
CONCLUSION: Long NEW ZEALAND DOLLAR for a 3-4% bounce on the next 1-3 weeks
-RBNZ rate cut
-China stock bubble implosion
-Global equity risk off fueled by Greek and Chinese crisis, hurting high yield currencies
From a fundamental perspective, on the following weeks:
-Greek debt crisis will be solved
-Chinese stock crisis will stabilize as PBOC has been cutting rates and is ready to intervene directly on stock markets and cut even more rates
-Chinese rate cuts should give some fresh air to AUD$ and NZD$
And from a technical perspective it's really difficult to see Kiwi to suffer more selling. Extremely oversold.
CONCLUSION: Long NEW ZEALAND DOLLAR for a 3-4% bounce on the next 1-3 weeks