NZD/USD: Looking for dip-buying opportunity, keep close eye on price action

My macro view remains the same that the commodity currencies will stay strong whilst the big 3 will remain weak as they continue with QE;
Interest rates in NZ remain highest of the majors and will stay that way for some time;
No overt signs of a weakening in Chinese demand for NZ assets;
AUD/NZD should run into strong technical resistance above 1.10;
On the flip side, the NZD is undoubtedly in danger of a long overdue retracement and milk prices are weakening.

Until we get some stronger evidence that the NZD bull trend is over, I’m happier buying NZD/USD dips. I have no fixed levels in mind just yet, let’s wait and see how the price action is over the next few hours.

 

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