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Phil Borkin, Senior Macro Strategist at ANZ, suggests that it looks like market positioning could finally start to catch up with the NZD (at least on a TWI basis).

Key Quotes

“Over the past couple of weeks we’ve highlighted that stretched positioning is less relevant as a contrarian signal when the data flow justifies it. However, with the latest CPI figures much stronger under the hood, we suspect the squeeze that began after the CPI figures is not over yet and could see the NZD outperform on crosses after a decent period of underperformance.”