According to FX Strategists at UOB Group, the Kiwi Dollar could extend the up move to the 0.6730 in the next weeks.
Key Quotes
24-hour view: “We expected a higher NZD yesterday but held the view that “0.6685 is unlikely to be seriously threatened”. However, NZD managed to edge above this level and touched 0.6693 before ending the day on a solid note (NY close of 0.6686). From here, there is scope for NZD to stage another leg higher to 0.6705 before the current NZD strength should ease off (next resistance at 0.6730 is unlikely to come in the picture). Support is at 0.6665 but only a break of 0.6640 would indicate that the current upward pressure has eased”.
Next 1-3 weeks: “We indicated yesterday (20 Sep, spot at 0.6635) that a daily closing above 0.6655 would suggest NZD could continue to head higher to 0.6705. NZD cracked 0.6655 without much difficulty and ended the day on a solid note (NY close of 0.6686, +1.10%). From here, 0.6705 appears to be within reach and we see room for further NZD strength to 0.6730. All in, there is no indication that the current positive tone in NZD is about to end and only a break of 0.6620 (‘key support’ previously at 0.6575) would suggest that a short-term top is in place”.
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