NZD/USD neutral, eyes on 0.7475 – UOB

The perspective for the Kiwi Dollar stays neutral for the time being, suggested FX Strategists at UOB Group.

Key Quotes

“NZD only managed to touch a low of 0.7412 (target at 0.7405/10 not met) before recovering to hit an overnight high of 0.7459. The sharp down-move from the high is gaining momentum rapidly and from here, a move below 0.7400 would not be surprising. That said, the next support at 0.7375 is likely out of reach for now. Resistance is at 0.7440 followed by the major level of 0.7475”.

“We just shifted to a neutral stance on NZD yesterday and there is no change to the view. As highlighted, the sharp plunge early yesterday has shifted the pressure to the downside even though 0.7375 is expected to offer solid support (this level is followed by another strong support at 0.7345, the high in June). Overall, this pair is expected to stay under pressure in the next few days unless it can reclaim 0.7475 (key resistance was previously at 0.7500)”.