UOB Group’s FX Strategists now see NZD/USD climbing above the 0.7300 mark in the next weeks.
Key Quotes
24-hour view: “We did not anticipate the sudden surge during NY hours as NZD rocketed to a high of 0.7263. While overbought, the strong advance in NZD has room to test 0.7280 first before easing. For today, the next resistance at 0.7305 is not expected to come into the picture. Support is at 0.7225 followed by 0.7200.”
Next 1-3 weeks: “We have expected NZD to ‘trade within a 0.7115/0.7260 range’ since last week. After trading mostly sideways for a week, NZD surged overnight and edged above the top of the expected range (high of 0.7263). Upward momentum has improved, albeit not by all that much. From here, NZD is expected to trade with an upward bias towards 0.7305. At this stage, the odds for a sustained rise above this level are not high. The positive bias is deemed intact as long as NZD does not move below 0.7170.”
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