Extra pullbacks in the Kiwi Dollar seem to have lost momentum in the near term, according to FX Strategists at UOB Group.
24-hour view: “NZD traded at a much wider range than anticipated; initially rising to a high of 0.6938 before dropping sharply to hit an overnight low of 0.6872. The swift decline from the high appears to have scope to extend lower but any weakness is likely limited to a ‘test’ of the 0.6850/55 support. Resistance is at 0.6900 but the stronger level is at 0.6930″.
Next 1-3 weeks: “NZD touched a high of 0.6938 yesterday, just a couple of pips below the ‘stop-loss’ for our bearish view at 0.6940. While NZD subsequently moved lower and closed on a soft note, downward momentum has waned considerably and the odds for further weakness to 0.6800 have diminished. From here, unless NZD can smash through and hold below the 0.6850/55 support within these 1 to 2 days, a break of the 0.6940 would not be surprising. In other words, time appears to be running out for NZD bears”.