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Kiwi Set to Rebound as Traders Wager on Hikes From Hawkish RBNZ
The New Zealand dollar looks poised to recover from its sharp selloff this month, with technical support, a yield advantage over the U.S. and hedge-fund bets pointing to gains in the kiwi ahead of a pivotal central bank decision. A 50 basis points hike by the Reserve Bank of New Zealand on Wednesday could amplify gains, while a 25 basis points increase would risk disappointing the market, undermining a rebound in the currency. Swaps traders are betting that a quarter-point hike is a done deal, with wagers split on a half-point hike. Long positions in the currency from hedge funds have been rising for months and are ... (full story)