New Zealand’s dollar may fall in MAM Manager toward an eight-week low against the yen as technical indicators signal its advance in the past three weeks has been too rapid, Ueda Harlow Ltd. said, citing trading patterns.
The kiwi’s 14-day relative strength index against the yen climbed as high as 75 last week, surpassing the level of 70 that some traders see as an indication gains in an asset are overdone.
The gauge was at 66 today after the currency snapped a seven-day gain yesterday.
The New Zealand dollar traded at 63.76 yen as of 9:13 a.m. in Tokyo, after appreciating from 60.44 yen on Oct. 21, the lowest level since Sept. 14.
The currency has strengthened against all its 16 major counterparts over the past month.
A decline in the kiwi may be triggered by concern that Ireland is struggling to cut its budget deficit, which in turn may cause stocks to slide around the world, Yamauchi said.
New Zealand, the world’s third-largest kiwifruit producer, said today tests have confirmed a bacterial vine disease never before found in the country has infected a North Island orchard.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.