NZD/USD could still slip back to 0.6590 – UOB

FX Strategists at UOB Group noted the Kiwi Dollar could still depreciate to the 0.6590 region vs. the greenback in the next weeks.

Key Quotes

24-hour view: “In yesterday’s update, we cited that ‘it is too early to conclude that the recent decline in NZD has come to an end... rallies are limited to 0.6650’. On Mon, NZD only touched a high of 0.6653 before paring gains to close at 0.6630. Indicators suggest that NZD is not prepared for a big move either ways, so a sideways pattern looks more likely for today. Expect 0.6610 – 0.6655 range.”

Next 1-3 weeks: “As highlighted, NZD has found a short-term top and the current pullback could test 0.6590. Looking ahead, if NZD were to breach 0.6590, the pullback could extend to 0.6555. On the upside, only a move above 0.6690 (‘strong resistance’ level previously at 0.6730) would suggest the current downward pressure has eased.”