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The New Zealand dollar is being hindered by weak emerging market currency perform according to analysts at BNZ. They see the NZD still in oversold territory.  

Key Quotes:  

“Last week was incredibly dull from a financial markets perspective, with little new information. Currency movements were muted, with the NZD trading within about a 50pip range and ending flat for the week at just above 0.64.”

“The NZD remains in “oversold” territory, with the currency trading sideways against a backdrop of improving fundamentals. The CBA NZ export commodity price index in USD terms has increased for seven consecutive weeks. In SDR terms, it has been an eight week climb, so the movement has nothing to do with currencies. A genuine improvement in NZ’s terms of trade is taking place, driven by a broadly based increase in soft commodity prices, and the NZD has been unresponsive to this development.”

“The NZD remains in a consolidation phase with support/resistance defined by 0.62-0.6450.”