NZD/USD likelihood to test 0.7050 – UOB

FX Strategists at UOB Group remain neutral on the Kiwi Dollar and believe it could test the mid-0.7000s vs. the greenback in the next weeks.

Key Quotes

24-hour view: “We expected NZD to test the strong 0.7030 resistance last Friday but it only touched a high of 0.7020 before pulling back sharply. Upward pressure has eased and the current price action is deemed as part of a consolidation phase. In other words, NZD is expected to trade sideways for now, likely within a 0.6955/0.7000 range”.

Next 1-3 weeks: “NZD touched a high of 0.7020 last Friday before easing to close on a relatively weak note. However, we continue to see chance for NZD to stage a stronger recovery towards 0.7050. Only a break of the ‘key support’ at 0.6940 would indicate that the current upward pressure has eased”.