Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

IG client sentiment data send bullish signal on NZD/USD

Retail traders are increasing their already short positions in the NZD/USD pair, according to IG positioning data, leading to a bullish contrarian trading bias.

Bullish signal on NZD/USD:

  • IG client sentiment data are sending a bullish contrarian trading signal for NZD/USD
  • The positioning figures show retail traders are short the pair and that their short positions are growing

IG client sentiment data bullish for NZD/USD

Market confidence in stocks, especially in the US, is falling as traders worry about rising Covid-19 cases in the US and Europe, a lack of progress in the talks on a US fiscal stimulus program and caution ahead of next Tuesday’s US elections.

Nonetheless, these fears do not seem to have spread to the currency and commodity markets, and IG client sentiment data are currently sending out a bullish contrarian signal on NZD/USD, which is widely seen as a 'risk on' currency pair.

IG client sentiment data for NZD/USD

The figures show 27.51% of traders are net long, with the ratio of traders short to long at 2.63 to 1. The number of traders net long is 14.42% higher than yesterday and 7.69% higher than last week, while the number of traders net short is 26.92% higher than yesterday and 71.78% higher than last week.

At DailyFX, we typically take a contrarian view to crowd sentiment, and the fact traders are net short suggests NZD/USD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger NZD/USD-bullish contrarian trading bias.

NZD/USD price chart, daily time frame (28 June – 27 October 2020)

This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.8 pips on EUR/USD
  • Analyze market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on the most popular forex markets


Prices above are subject to our website terms and agreements. Prices are indicative only

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading forex provider.

Stay on top of upcoming market-moving events with our customisable economic calendar.