NZD/USD looks consolidative above 0.6660 – UOB

In view of FX Strategists at UOB Group, the Kiwi Dollar is seen attempting some consolidation above the 0.6660 level in the next weeks.

Key Quotes

24-hour view: “Although our downside target for NZD at 0.6600 (low: 0.6586) was met overnight, the subsequent strong rebound was totally unexpected. Recent range highs at around 0.6655/60 may come into focus today though it is probably too early to call for a sustained recovery beyond which. On the other hand, supports are at 0.6605 and 0.6590.”

Next 1-3 weeks: “Our previous rhetoric (06 Jan, spot at 0.6655) was that “NZD has found a short-term top and the current pull-back could test 0.6590”. Overnight, NZD touched as low as 0.6586. However, the subsequently strong recovery back above 0.6600 indicated a “rejection” of the key level. What is means is that while the next direction is still for a lower NZD, in the coming sessions NZD may first consolidate in a small range above 0.6600 first. Rallies are likely to be limited to 0.6650 while supports are at 0.6600 and 0.6590.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD trims intraday gains returns to mid-1.17

The EUR/USD pair retreated after flirting with the 1.1800 figure, as the market mood somehow turned sour. Focus on the next US fiscal relief package, coronavirus, and economic progress.


GBP/USD approaches 1.3000 once again

GBP/USD is easing towards weekly lows as dollar bulls are giving it another try. Brexit concerns and UK lockdowns in the eye of the storm.


XAU/USD bull-bear tug-of-war extends around $1975

XAU/USD sidelined heading into the European session. Downside limited by dollar weakness, coronavirus concerns. Focus remains on the USD dynamics and the United States/China updates.

Gold News

What you need to know about trading in August

The generally received wisdom is that summer is a quiet month for trading. Traders are on holiday and markets quieten down. That’s the expectation among many. However, the reality is that August can be one of the most volatile trading months of the year.

Read more

WTI: Bulls await API data to attack $41.00

WTI struggles to extend recovery moves from $40.74 beyond $41.00. Virus woes join OPEC output increase to combat drop in Russian oil production. US Factory Orders, API inventories will be the key.

Oil News