NZD/USD downside appears limited – UOB

Further decline in the Kiwi dollar seems to be limited in the near term, suggested analysts at UOB Group.

Key Quotes

“The expected probe lower turned out to be more impulsive than anticipated as NZD dropped to a low of 0.6757. The weak daily closing suggests further downward pressure but at this stage, any down-move is likely limited to a test of last week's low near 0.6717”.

“Despite the sharp drop last Friday, downward momentum is lackluster and we see limited downside potential from here. Those who are shorts should look to book partial-profit at 0.6670”.