New Zealand dollar may rally despite bearish hedge-fund positioning

8 articles · Updated · Bloomberg · May 11

Westpac said the kiwi could rise almost 2% from current levels if technical support holds, even as leveraged funds' short positions hit their highest since December 2019 by May 5.
Analysts said a hawkish Reserve Bank of New Zealand tilt could support the currency, while any easing of Middle East tensions may further boost sentiment.
The report highlights a disconnect between speculative futures positioning and spot performance, suggesting the NZD has so far resisted growing bearish bets.

Will New Zealand's hawkish central bank trigger a massive short-squeeze against billion-dollar hedge fund bets?

Could a sudden Mideast escalation crush the Kiwi, proving the bearish hedge funds right after all?