NZD/USD faces a tough barrier at 0.7435/40 – UOB

FX Strategists at UOB Group remain bullish on the Kiwi Dollar, although they noted the strong hurdle at the 0.7435/40 band.

Key Quotes

24-hour view: “NZD traded sideways as expected albeit at a narrower and lower range than anticipated. The daily closing is on the weak side and from here, another test of the 0.7300 support seems likely (overnight low has been 0.7303). The next support at 0.7280 is much stronger level and is unlikely to break so easily. On the upside, only a move back above 0.7355 would indicate that the current mild downward pressure has eased (minor resistance is at 0.7340)”.

“NZD came within sight of the 0.7280 ‘stop-loss’ level last Friday but rebounded strongly from a low of 0.7289. Despite the recovery, upward momentum remains on the back foot and last week’s 0.7437 is still a high hurdle to overcome. From here, NZD need a ‘boost’ to stay bullish and it has to move and stay above 0.7390 within these 1 to 2 days or the risk of a break below the ‘stop-loss’ level would increase quickly”.