Further recovery in NZD lies above 0.6740 – UOB

The Kiwi Dollar is expected to extend its move higher if NZD/USD close above 0.6740 in the near term.

Key Quotes

24-hour view: “NZD traded between 0.6696 and 0.6738 yesterday, relatively close to our expected range of 0.6700/0.6740. That said, the weak daily closing of 0.6698 suggests upward pressure has eased. From here, NZD is expected to trade sideways to slightly lower, likely within a 0.6685/0.6725 range”.

Next 1-3 weeks: “NZD extended its advance and easily moved above the 0.6710 resistance (high of 0.6725). As indicated yesterday, NZD has to register a NY close above 0.6740 in order to indicate it is ready for a sustained advance. The prospect for such a scenario is not high for now but it would continue to rise if NZD can continue to hold above 0.6670 (level was at 0.6640 yesterday) within these few days”.