NZD/USD unlikely to break above 0.6980 – UOB

According to FX Strategists at UOB Group, a breakout of the 0.6980 area appears unlikely in the near term for NZD/USD.

Key Quotes

24-hour view: “We expected a lower NZD yesterday but were of the view that that any down-move is “unlikely to move significantly below 0.6870”. NZD dropped to a low of 0.6875 before staging an unexpectedly strong rebound to current level of 0.6940. The undertone is still clearly positive but at this stage, a move beyond the major 0.6980 resistance seems unlikely (minor resistance is at 0.6960). Support is at 0.6915 followed by 0.6895. The 0.6875 low is likely ‘safe’ for now”.

Next 1-3 weeks: “There is not much to add as we continue to hold a neutral view for NZD. As highlighted in recent updates, the current movement is viewed as the early stage of a consolidation phase even though the immediate bias is for a probe higher towards the top of the expected 0.6825/0.6980 range”.