NZD/USD now looks to 0.6900 – UOB

FX Strategists at UOB Group noted that a sustainable move above 0.7010 remains out of favour in NZD/USD for the time being.

Key Quotes

24-hour view: “Yesterday, we noted that ‘despite the advance, upward momentum remains lackluster’ but we were of the view that NZD ‘could continue to edge higher’. However, NZD traded sideways between 0.6942 and 0.6977 before settling on a soft note at 0.6948. Momentum indicators are turning neutral and NZD is likely to trade sideways for today, expected to be within a 0.6920/0.6965 range.”

Next 1-3 weeks: “On Wednesday (25 Aug, spot at 0.6985), we indicated that there is room for the rapid advance in NZD to extend but a sustained rise above 0.7010 appears unlikely for now. NZD snapped its winning streak yesterday (26 Aug) as it closed lower by -0.37% (0.6948). We continue to hold the same view for now but a break of 0.6900 (no change in ‘strong support’ level) would indicate that NZD is not ready to move above 0.7010 just yet.”