NZD/USD neutral in a 0.6920/0.7055 – UOB

The Kiwi Dollar is seen meandering between 0.6920/0.7055 vs. the greenback for the next weeks, according to FX Strategists at UOB Group.

Key Quotes

“The registered low of 0.6949 did not challenge the strong support indicated at 0.6925/30 yesterday. The subsequent rapid rise from the low appears to have scope to extend further but any up-move is expected to struggle near the major 0.7045/50 resistance”.

“While upward momentum has improved, it is too early to expect a sustained up-move as 0.7055 is a very strong resistance and this level is unlikely to yield so easily. Overall, we prefer to hold a neutral stance for now even though the short-term bias is tilted to the upside (as long as 0.6950 is intact)”.