NZD: In Demand As Hedge Funds Buying But Caution Is Warranted Here – Credit Agricole

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What is the outlook in the near-term for the New Zealand dollar?

Here is their view, courtesy of eFXdata:

Credit Agricole CIB Research adopts a cautious bias on NZD in the near-term.

The NZD remained in demand, with speculative oriented investors such as hedge funds buying. While firm risk appetite coupled with the currency’s firm rate advantage has been driving part of the latest development, the currency is now trading close to strongly overbought territory,” CACIB notes.

From that angle, caution is warranted with corrective downside risk being on the rise,” CACIB adds.

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Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.