NZD underpinned by short market and broadly stronger commodities - ANZ

According to ANZ, a short market and broadly stronger commodities are providing support to the NZ Dollar, which remains steady above the 0.70 mark. 

Key Quotes

Short positioning in NZD according to CFTC positioning has shifted back to extreme levels. Leveraged funds goes to record net short positioning (-24,165 a shift of approx.. NZD787mio worth of contracts in the week to 19th Dec), Non-Commercial positioning heads back to a net shorter positioning to -16,619. Both see a reduction of long positions that caused this and combined positioning is at record net short levels (ie Total net short positioning of 40,784 contracts, circa NZD4bio).

With the currency market so thin over this time of year it pays to be mindful of currency positioning and the path of least resistance. That combined with U.S tax cuts which appear to be fully priced. A break above 7035-7050 could open a move back as high as 72 cents but with the 100 and 200 day.ma between those two levels to provide a little resistance. Support will be evident around the 6980-7000 levels for now.