Flash: Kiwi poised to retain buying interest - BNZ

FXstreet.com (Barcelona) - As risk sentiment improves, the New Zealand Dollar continues to be benefited by strong buying interest, as investors and traders readjust their views towards a shiny New Zealand fundamental, if compared vs global standards, notes Mike Jones, FX strategist at Bank of New Zealand.

According to Jones, New Zealand commodity price data, positive GlobalDairyTrade auctions this week and ANZ commodity price index, are all sending a message to support the Kiwi.

In view of Jones, "dairy prices are looking set to hold near record highs in coming months", a factor that should buoy the Kiw, adding that short-covering is also to blame for the latest Kiwi bounce, "with speculative and leveraged accounts wary of running large shorts into Friday's US payrolls."