NZD/USD keeps the positive view near term – UOB

According to FX Strategists at UOB Group, further gains are likely in NZD/USD in the near term, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected NZD to ‘trade sideways between 0.6915 and 0.6970’. However, NZD edged higher to 0.6983 before closing at 0.6974 (+0.29%). Despite the advance, upward momentum remains lackluster. That said, NZD could continue to edge higher but a break of the major resistance at 0.7010 is unlikely (there is a minor resistance at 0.6990). A breach of 0.6940 (minor support is at 0.6955) would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “There is no change in our view from yesterday (25 Aug, spot at 0.6985). As highlighted, there is room for the rapid advance in NZD to extend but a sustained rise above 0.7010 appears unlikely for now. The current upward pressure is deemed intact as long as NZD does not breach the ‘strong support’ at 0.6900 (level was at 0.6870 yesterday). Looking ahead, if NZD closes above 0.7010, it would increase the odds for NZD to advance to 0.7045.”