FX Strategists at UOB Group noted the likeliness of a test of the 0.7090 area have diminished as of late.
“NZD edged below the strong 0.7000 support before rebounding strongly this morning after the release of stronger than expected inflation data. The up-move appears to be running ahead of itself even though a retest of the 0.7050/55 high seen early yesterday would not be surprising (next resistance is at 0.7070)”.
“Despite the strong bounce after the release of the stronger than expected inflation data this morning, we still do not attach a high probability for NZD to extend its recent strength towards 0.7090. That said, only a move below 0.6980 would indicate that a short-term top is in place. In the meanwhile, this pair could grind higher towards 0.7070 within the next couple of days”.
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