In opinion of FX Strategists at UOB Group, the outlook for NZD/USD remains tilted to the constructive side for the time being, with the next target at 0.7280.
Key Quotes
24-hour view: “We expected NZD to strengthen yesterday but we were of the view that ‘any advance is likely limited to a test of 0.7245’. The subsequent NZD strength exceeded our expectation as it rose to 0.7249. Upward momentum has improved, albeit not by much. From here, NZD could edge above 0.7255 but major resistance at 0.7280 is likely out of reach. Support is at 0.7220 followed by 0.7205.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (15 Feb, spot at 0.7225). As highlighted, the outlook for NZD is still positive but it could take a few days before it could move to 0.7280. Overall, the positive outlook is deemed intact as long as NZD does not move below 0.7180 (‘strong support’ level was at 0.7155 yesterday).”
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