NZD/USD scope for a test of 0.7085 – UOB

According to FX Strategists at UOB Group, the Kiwi Dollar could attempt a test of the 0.7085 area vs. the buck in the near term.

Key Quotes

“We indicated yesterday that “a move above last week's peak of 0.7050 seems likely even though the major 0.7080 resistance is unlikely to be challenged for now”. NZD touched a high of 0.7056 and closed literally at the high at 0.7055. The up-move appears to have scope to extend higher but 0.7080/85 is still acting a major resistance and this level is unlikely to yield so easily”.

“We have held the same view since last Thursday wherein we expect the strong post-FOMC surge to extend higher to 0.7085. This level is near the declining trend-line and is a strong resistance and it is too early to expect a sustained break above this level (next resistance is at 0.7130). Overall, NZD is expected to stay underpinned in the coming days unless there is a drop back below 0.6990”.