The buying interest is seen fading if NZD/USD breaches the 0.7125 level in the short-term horizon, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “NZD traded between 0.7130 and 0.7177 yesterday, slightly narrower than our expected sideway-trading range of 0.7130/0.7180. Further sideway-trading would not be surprising even though the slightly firmed underlying tone suggests a higher range of 0.7140/0.7185.”
Next 1-3 weeks: “We continue to hold the same view from last Friday (22 Oct, spot at 0.7160). As highlighted, upward momentum is beginning to wane and a break of 0.7125 (no change in ‘strong support’ level) would indicate that the NZD strength that started more than a week ago has run its course. In order to rejuvenate the flagging momentum, NZD has to move and stay above 0.7180 within these 1 to 2 days or a break of 0.7125 would not be surprising.”
