Speculators Drive NZD USD Higher; Weak Fundamentals May Limit Gains

Gains could be limited in the NZD USD as this market may not be ready to explode to the upside until the New Zealand economy starts to show signs of a recovery.  At the mid-session, this pair is showing signs of a bottom as speculators are increasing their demand for higher yielding assets.

Although the fundamentals do not support it, the NZD USD is pushing higher at the mid-session driven primarily by increased trader appetite for risk.  Speculators are trying to build a case for the start of a bull market but gains could be limited until the New Zealand economy starts to show signs of a recovery.