The rally in New Zealand’s currency against the U.S. dollar to its highest level in more than two years may be poised to falter as momentum studies signal recent gains are vulnerable.
The kiwi, as the currency is called, touched 87.46 U.S. cents on April 10, the highest level since August 2011. Technical signals known as stochastics suggest the currency may be overstretched, according to JPMorgan Chase & Co. A momentum indicator signals New Zealand’s dollar may fall 2.3 percent in 15 days, Bloomberg strategist Andrew Robinson wrote yesterday.
