Francesco Pesole, an FX Strategist at ING, notes that the New Zealand dollar net speculative positions dropped by 13% of open interest in the week between 27 November – 3 December, and is now at -38%, according to CFTC data. 

• "This move was widely expected as short-positions had previously held up surprisingly well, despite the mounting NZD momentum.
• NZD remains the biggest G10 short amongst speculative investors as well as the only currency whose positioning falls outside the +/1 standard deviation band around its 5-year average. All of this suggests there is still some room for additional NZD short squeezing, which may continue to support the currency ahead.
• The AUD net positioning also moved into less negative territory (+5% in the reference week), but a percentage of open interest remains around half of the shorts built-in NZD."