NZD/USD still neutral near term – UOB

In opinion of FX Strategists at UOB Group, The Kiwi Dollar is expected to stay rangebound within 0.7230 and 0.7350 in the short term.

Key Quotes

“The 0.7350 resistance is more resilient than expected as NZD dropped sharply after touching a high of 0.7345. The sharp drop to a low of 0.7273 appears to be running ahead of itself and further sustained down-move is not expected. That said, a dip below the 0.7373 low would not be surprising but the next support at 0.7250 is expected to hold for a recovery. Resistance is at 0.7310, 0.7325 followed by the still very strong level of 0.7350”.

“The major 0.7345/50 resistance was tested thrice within the last one week and held all three times. We highlighted yesterday that only a NY closing above 0.7350 would indicate that NZD has moved into a bullish phase. With the sharp pullback yesterday, upward momentum has eased and this pair has likely moved back into a 0.7230/0.7350 consolidation range”.