In opinion of FX Strategists at UOB Group, NZD/USD could edge higher to the 0.7100 area in the next weeks.
Key Quotes
24-hour view: “We expected NZD to strengthen yesterday but we were of the view that ‘0.7060 could be just out of reach’. Our view was not wrong as NZD topped out at 0.7050. Upward momentum has waned and NZD is unlikely to strengthen today. Overall, NZD is more likely to consolidate and trade between 0.7000 and 0.7045.”
Next 1-3 weeks: “The positive phase in NZD that started on 06 Nov (spot at 0.6765) is still intact. Our latest narrative was from last Wednesday (25 Nov, spot at 0.6975) wherein ‘further NZD strength is not ruled but the next major resistance at 0.7060 may not come into the picture so soon’. Shorter-term momentum has improved and a break of 0.7060 would not be surprising and would shift the focus to 0.7100. On the downside, the ‘strong support’ level has moved higher to 0.6980 from 0.6940.”
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