NZD/USD still favours a move to 0.6270 – UOB

NZD/USD is still seen slipping back to the 0.6270 region in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that “downward pressure has eased” and expected NZD to ‘trade sideways between 0.6305 and 0.6355’. NZD subsequently traded between 0.6304 and 0.6356. The underlying tone has firmed somewhat and from here, there is scope for NZD to probe the 0.6360 resistance. For today, the strong resistance at 0.6380 is not expected to come into the picture. Support is at 0.6325 followed by 0.6305.”

Next 1-3 weeks: “NZD tried but failed again to move below 0.6300 as it rebounded from 0.6304 (NZD touched 0.6303 last Friday). For now, there is no change to our view from last Friday (21 Feb, spot 0.6330) wherein we expected further NZD weakness to 0.6270. On the upside, a breach of 0.6380 (no change in ‘strong resistance’ level) would indicate that the current downward pressure has eased.”