Hedge-Fund Longs, Hawkish Rate Bets Mean Kiwi Has Room to Fall
- Leveraged funds’ long positions are close to three-year high
- Further upside for kiwi appears limited: Commonwealth Bank
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There’s a wealth of positive news out there for the New Zealand dollar. All the more reason it may be poised to weaken.
Leveraged funds’ long positions are near a three-year high, while traders are pricing in more than a 90% chance of another central-bank interest-rate hike next month. With all this good news already in the price, there is plenty of room for disappointment.