The kiwi dollar is seen depreciating further vs. the greenback in the next weeks, suggested FX Strategists at UOB Group.
24-hour view: “The rapid rebound in NZD that touched a high of 0.6672 came as surprise (we were expecting NZD to extend its decline to 0.6590). Downward pressure has more or less dissipated and the current movement is viewed as part of an on-going consolidation phase. In other words, NZD is expected to trade sideways, likely within a 0.6635/0.6675 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 0.0.6555. On the upside, only a move above 0.6690 (‘strong resistance’ level previously at 0.6730) would suggest the current downward pressure has eased.”
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