The US dollar is strengthening, causing NZD/USD to fall.
The US dollar has been aggressively bought versus all major currencies since the beginning of May. The main factors behind this have been (a) expectations the US central bank may start to slow down its pace of money printing this year, and (b) the Japanese central bank starting its own massive money printing program. What it means for NZD/USD near term is a further decline, since NZD was previously the most loved of the major currencies. Extreme speculative long positioning needs to be unwound before the NZD can start the next major rally. A fall to 0.7800 during the month ahead is likely.
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