The prospects on the pair appear constructive in the short-term, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “Instead of testing the 0.6715 support (as expected last Friday), NZD traded in a quiet manner between 0.6728 and 0.6767. The underlying tone still appears to be soft and we continue to see chance for 0.6715 to be tested. At this stage, a sustained move below this level is not expected (next support is at 0.6690). Resistance is at 0.6750 followed by 0.6775″.
Next 1-3 weeks: “There is not much to add to last Wednesday (07 Nov, 0.6740) update. As highlighted, “further NZD strength is not ruled out but 0.6850 is likely out of reach”. After last Friday’s soft daily closing (NY close of 0.6737, -0.26%), it appears that NZD is close to making a short-term top. However, confirmation is only upon a move below the ‘key support’ at 0.6690 (level was previously at 0.6670)”.
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