NZD/USD looks poised to challenge 0.6950 – UOB

NZD/USD could extend the downside to the mid-0.6900s in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectations for NZD to “test 0.6975” did not materialize as it traded between 0.6993 and 0.7055 before closing unchanged at 0.7005. The underlying tone still appears to be soft and we continue to see chance for NZD to test 0.6975. That said, a sustained decline below this level is unlikely. Resistance is at 0.7030 followed by 0.7055.”

Next 1-3 weeks: “Our update from yesterday (22 Sep, spot at 0.7000) still stands. As highlighted, there is room for NZD to edge lower to 0.6975, possibly 0.6950. On the upside, a break of 0.7080 (no change in ‘strong resistance’ level) would indicate that the current downward pressure has eased.”