The Kiwi Dollar could attempt a test of the 0.6700 area vs. the greenback in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We highlighted last Friday “there is scope for NZD to move above the overnight high of 0.6660 but a break of September’s peak of 0.6700 is not expected”. In line with expectation, NZD rose to a high of 0.6690 before pulling-back quickly. Upward pressure has eased and we continue to expect 0.6700 to remain intact. The current price action is more likely part of a consolidation phase. In other words, NZD is expected to trade sideways, likely within a 0.6620/0.6680 range”.
Next 1-3 weeks: “We highlighted last Friday (02 Nov, spot at 0.6645) there is “scope for NZD to test the September’s peak of 0.6700″. NZD subsequently rose to a high of 0.6690 before pulling back quickly. From here, there is no change to our view and we continue to see chance for a ‘full test’ of 0.6700. While the prospect for a sustained break above 0.6700 is not high, a clear break of this level could lead to a quick pop to the next resistance at 0.6720. On the downside, only a move below 0.6565 (no change in level of ‘key support’) would indicate that the current upward pressure has eased”.
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