FX Strategists at UOB Group noted the Kiwi Dollar remains bearish although expect the decline to be limited around 0.6920 in the near term.
24-hour view: “The 0.6965 support highlighted yesterday was unthreatened as NZD recovered after touching a low of 0.6985. Downward momentum has eased rapidly but there is still chance for a test of 0.6965 before a more sustained rebound can be expected. Resistance is at 0.7025 followed by 0.7050”.
Next 1-3 weeks: “We just turned bearish yesterday (02 May, spot at 0.7005) and there is no change to the view. While it appears that we are late in the game, there is scope for further NZD weakness even though the downside potential is likely ‘limited’ to 0.6920 (0.6965 is already quite a strong level). There is no change to the ‘stop-loss’ at 0.7085 for now”.
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