FX Strategists at UOB Group sees the Kiwi Dollar could advance to the 0.7090 region in the next weeks.
“Instead of trading sideways as expected, NZD rose strongly to touch a high of 0.7059. This level is just above the major 0.7050/55 resistance and based on the still supportive momentum, a move above this level could lead to extension to 0.7070. That said, the current NZD strength appears to be over-stretched and a sustained rally is not expected for now (next resistance at 0.7090)”.
“The immediate 0.7050/55 target that was first highlighted when we turned bullish on Tuesday, 23 May (spot at 0.7000) was met as NZD touched a high of 0.7059 yesterday. While the rapid pace of rally suggests that caution is warranted, further extension to 0.7090 would not be surprising. Stop loss is adjusted higher to 0.6975 from 0.6940”.