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The Kiwi Dollar could lose further ground and test the 0.6560 region vs. the greenback in the near term, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “NZD traded between 0.6602 and 0.6631 yesterday, narrower than our expected range of 0.6605/0.6645. The daily closing is on the soft side (NY close of 0.6607) and the risk is for further weakness. From here, barring a break of 0.6630, NZD could dip below 0.6590 but the next support at 0.6560 is not unexpected to come into the picture, at least not for today”.

Next 1-3 weeks: “We indicated on Monday (08 Jul, spot at 0.6675) that if NZD were to close below the expected 0.6610/0.6730 range, it would indicate that it is ready to tackle 0.6560. NZD closed at 0.6607 in NY and from here, NZD is expected to trade with a downside bias towards 0.6560. On the upside, only a move above 0.6660 would indicate that the downward pressure has eased”.