NZD momentum finally reflected in positioning – ING

Sandeep Kanihama FXStreet Contributor

As per the CFTC data for the week between 27 Nov-3 Dec, the New Zealand dollar net speculative positions dropped by 13% of open interest, and is now at -38%, points out Francesco Pesole, FX strategist at ING.

Key Quotes

“This move was widely expected as short-positions had previously held up surprisingly well, despite the mounting NZD momentum.”

“NZD remains the biggest G10 short amongst speculative investors as well as the only currency whose positioning falls outside the +/1 standard deviation band around its 5-year average. All of this suggests there is still some room for additional NZD short squeezing, which may continue to support the currency ahead.”

“The AUD net positioning also moved into less negative territory (+5% in the reference week), but a percentage of open interest remains around half of the shorts built-in NZD.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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