Long NZD/USD positions vulnerable - ING

In view of analysts at ING, long NZD/USD positions may be vulnerable in another week of rising bond yields and any positioning adjustment could see a correction towards 0.72.

Key Quotes

“Markets are content with the idea that the RBNZ will begin hiking in 2018 rather than bringing forward plans in light of the hawkish talk elsewhere.”

“A fairly light domestic calendar in the week ahead means that NZD will be subject to developments in the global market. A bond market sell-off looks to be the big near-term headwind for the G10 high-yielders; long NZD/USD positions may be vulnerable in another week of rising bond yields and any positioning adjustment could see a correction towards 0.72.”