FX Strategists at UOB Group has shifted their outlook on the Kiwi Dollar to bearish in the near term horizon.
Key Quotes
24-hour view: “In line with expectation, NZD extended its decline but did not threaten the major support highlighted at 0.6740 yesterday (overnight low of 0.6747). That said, the weak closing in NY suggests the immediate pressure is still on the downside but in view of the severely oversold conditions, any further decline is likely limited to 0.6730 (next support is at 0.6700). On the upside, stabilization is only upon a move back above 0.6800 (minor resistance is at 0.6780)”.
Next 1-3 weeks: “We just turned bearish on NZD yesterday (28 Jun, spot at 0.6785) and there is no change to the view. As highlighted, while oversold, the current decline could extend further to 0.6720 (next support is at 0.6700). We will maintain a bearish NZD view until the ‘stop-loss’ at 0.6830 is taken out (level previously at 0.6860)”.
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