NZD/USD risks a test of 0.7040 – UOB

In opinion of FX Strategists at UOB Group, NZD/USD could slip back to the 0.7040 region in the near term.

Key Quotes

24-hour view: “Our expectations for NZD to ‘dip below 0.7065’ yesterday did not materialize as it rebounded from a low of 0.7074. The rebound from the low has gathered some momentum and NZD could edge higher from here. However, any advance is unlikely to break the major resistance at 0.7160 (there is another resistance at 0.7145). Support is at 0.7105 followed by 0.7090.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (15 Sep, spot at 0.7095). As highlighted, after retreating from near the top of the expected 0.7040/0.7160 consolidation range (high of 0.7157), NZD is likely to edge lower and test the bottom of the range at 0.7040.”