In opinion of FX Strategists at UOB Group, NZD/USD could slip back to the 0.6550 region in the near-term.
Key Quotes
24-hour view: “Our expectation for NZD to move lower yesterday did not materialize as it traded between 0.6590 and 0.6634 before closing on a firm note at 0.6634 (+0.32%). Upward momentum has improved a tad and this could lead to NZD edging upwards to 0.6650. For today, the next resistance at 0.6675 is not expected to come under threat. Support is at 0.6610 followed by 0.6590.”
Next 1-3 weeks: “Last Thursday (29 Oct, spot at 0.6650), we held the view that ‘the near-term bias is tilted to the downside but any weakness in NZD is viewed as part of 0.6590/0.6710 range’. NZD is currently approaching the bottom of the range and as downward momentum has improved, there is room for NZD to move towards the major support at 0.6545. At this stage, the prospect for a sustained decline below this level is not high. On the upside, a break of 0.6675 (‘strong resistance’ level) would indicate that NZD is still trading within a broad range.”
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