NZD/USD could re-visit 0.7050 – UOB

FX Strategists at UOB Group stay neutral on the Kiwi Dollar, suggesting it could rebound to the mid-0.7000s vs. the buck in the near term.

Key Quotes

“Similar to AUD/USD, the undertone for this pair is positive but any up-move is unlikely to have enough momentum to move clearly above the major 0.7050 resistance. On the downside, 0.6980 is expected to be strong enough to hold any intraday pullback”.

“Last week’s 0.7010 is viewed as a short-term low and the rebound from the low appears incomplete. We expected the rebound to extend to 0.7050 but upward momentum is more robust than expected and a move above this level would not be surprising (the next resistance is at the mid-March peak of 0.7090). Support is at 0.6980 but only a break below 0.6950 would indicate that the immediate upward pressure has eased”.