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Kiwi’s Six-Week Winning Run Looks Stretched as Sentiment Cools

  • 200-day moving average a tough hurdle with momentum stretched
  • Consumer confidence at five-month low as jumbo rate hikes bite

A strong rally in the New Zealand dollar has wiped out about half its losses for the year, but further gains look harder to come by as technical resistance meets cooling investor sentiment.

The kiwi has surged over 13% from a mid-October low, climbing for six straight weeks, amid broad dollar weakness and a record rate hike from the Reserve Bank of New Zealand. Momentum indicators suggest the move is overdone and the currency’s 200-day moving average looms as a closely-watched technical resistance level.