Forex Flash: Strong NZD buying taking place – BNZ

FXstreet.com (Barcelona) - Exporters remain keen buyers of dips in the NZD. According to the BNZ Research Team, “That’s the very clear message from our Currency Flows Monitor – we’ve seen consistently strong net NZD buying in our flows over the past month, coinciding with the NZD/USD pullback from 0.8500 to 0.8300.”

Three month cumulative net flows are well above the 2-year average for all of the major NZD currency pairs. Last week, the trend continued. Net flows were in the 68th percentile for the aggregate NZD index, with NZD/AUD flows in the 90th percentile. This ‘buy on dips’ mentality will remain in play as long as NZD fundamentals remain supportive and the local export community remain under hedged with respect to their currency exposures.