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26 Apr 2016
NZD/USD on way to 0.6940 key resistance? - UOB
Analysts at UOB Group explained the fundamentals and technicals surrounding the Kiwi.
Key Quotes:
"The New Zealand Institute of Economic Research (NZIER) Monetary Policy Shadow Board has suggested that the RBNZ leave the OCR unchanged this week, given the risks to financial stability of another rate cut."
"NZD/USD rebounded but without testing the 0.6835 support first. The recovery from the low appears to have scope to extend higher. Strong support is still at 0.6835."
"Corrective pull-back has scope to extend to 0.6765. We continue to hold the view that the current corrective pullback has scope to extend lower to 0.6765. Only a move back above 0.6940 would indicate that the immediate downward pressure has eased."
Key Quotes:
"The New Zealand Institute of Economic Research (NZIER) Monetary Policy Shadow Board has suggested that the RBNZ leave the OCR unchanged this week, given the risks to financial stability of another rate cut."
"NZD/USD rebounded but without testing the 0.6835 support first. The recovery from the low appears to have scope to extend higher. Strong support is still at 0.6835."
"Corrective pull-back has scope to extend to 0.6765. We continue to hold the view that the current corrective pullback has scope to extend lower to 0.6765. Only a move back above 0.6940 would indicate that the immediate downward pressure has eased."