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A test of the 0.7200 region appears to be losing momentum in NZD/USD, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for NZD ‘to retest the 0.6700’ level did not materialize as it traded in a relatively quiet manner between 0.6642 and 0.6678. The price action offers no fresh clues and NZD could trade sideways for today, likely between 0.6635 and 0.6680.”

Next 1-3 weeks: “We highlighted on Tuesday (28 Jul, spot at 0.6685) that ‘a break of 0.6700 would shift the focus to 0.6755’. NZD subsequently edged to a high of 0.6702 and has not been able to make much headway on the upside. Momentum has deteriorated and the odds for further NZD strength have diminished. From here, a breach of 0.6600 (no change in ‘strong support’ level) would indicate the current mild upward pressure has eased. Only an unlikely daily closing above 0.6700 would indicate that NZD is ready to move higher in a sustained manner.”