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In view of FX Strategists at UOB Group, the case for extra gains in the pair has lost some traction.

Key Quotes

24-hour view: “NZD traded between a relatively broad range of 0.6634 and 0.6696 before ending the day on a firm note (NY close of 0.6656, +0.12%). The underlying tone has improved somewhat and we see chance for NZD to test the 0.6700 resistance before the current mild upward pressure should ease off. Support is at 0.6635 but the stronger level is closer to 0.6620″.

Next 1-3 weeks: “There is not much to add as NZD hit an overnight high of 0.6696, holding just a few pips below last week’s 0.6699 peak. The rapid pullback from the high reinforces our current view wherein the odds for further NZD strength have diminished. However, only a break of 0.6620 (no change in ‘key support’) would indicate that a short-term top is in place. Until then, NZD could stage another leg higher to 0.6730 but this has to happen within these 1 to 2 days or the current upward pressure would ease quickly”.