NZD/USD faces a probable move to 0.6520 – UOB

NZD/USD remains under pressure and could slip back to the 0.6520 region in the near-term, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘strong rebound in NZD could extend towards 0.6610’. Our expectation did not materialize as NZD only touched a high of 0.6599 before easing off. Downward momentum has ticked up and for today, NZD could edge lower towards the strong support at 0.6520. A dip below this level is not ruled but the next support at 0.6500 is unlikely to come under threat. Resistance is at 0.6565 followed by 0.6585.”

Next 1-3 weeks: “In our update from Tuesday (11 Aug, spot at 0.6585), we held the view that NZD ‘is expected to trade with a downward bias towards 0.6520’. NZD dipped to a low of 0.6524 yesterday (12 Aug) before rebounding. The underlying tone still appears to be soft and from here, a retest of the 0.6520 level is not ruled. Only a move above 0.6660 would indicate the current mild downward pressure has eased.”