NZD/USD scope for a drop to 0.6475 – UOB

FX Strategists at UOB Group remain neutral on the Kiwi Dollar while they still see a potential test of the 0.6475 level in the near term.

Key Quotes

24-hour view: “We highlighted yesterday that there is “room for NZD to test next resistance at 0.6620 before it should settle down”. NZD subsequently touched a high of 0.6616 before easing off. Upward pressure has waned with the pull-back from the high and NZD is deemed to have moved into a consolidation phase. In other words, we expect NZD to trade sideways for today, likely within a 0.6560/0.6610 range”.

Next 1-3 weeks: “NZD touched a high of 0.6616 yesterday, just a few pips below our 0.6620 ‘key resistance’. As highlighted in recent updates, as long as this level is intact, we would continue to hold a ‘negative’ NZD view and see scope for NZD weaken towards the 0.6475 support. At this stage, the odds for a clear break of this level are not high”.