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In light of the recent price action, a probable test of the 0.63 area in NZD/USD appears to have lost momentum for the time being, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “No change in view from yesterday, see reproduced update below. That said, after yesterday’s strong rebound, the prospect for a move to

0.6300 has diminished further”.

Next 1-3 weeks: “NZD rebounded to 0.6411 last Friday (12 Aug) before ending on a firm note at 0.6395 (+0.51%). However, events over the weekend sent it plunging to a low of 0.6342 this morning. The price action was not surprising as we indicated last Friday (12 Aug, spot at 0.6365) that our long-held level of 0.6350 is “within sight”. While further NZD weakness is not ruled, the current decline is over-extended and the next support at 0.6300 could be out of reach. That said, NZD is not out of the woods yet as it has to reclaim 0.6430 (‘key resistance’ was at 0.6455 last Friday) in order to indicate that a short-term bottom is in place”.