NZD/USD risks further downside – UOB

In light of the recent price action, NZD/USD remains under downside pressure, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Expectation for NZD to ‘edge lower towards 0.6220’ did not materialize as it traded between 0.6252 and 0.6348. The underlying tone still appears to be soft and we continue see chance for NZD to drift lower to 0.6220. Resistance is at 0.6295 but only a move above 0.6320 would indicate the current mild downward pressure has eased.”

Next 1-3 weeks: “After Monday’s (09 Mar) super-wide range, NZD unsurprisingly traded within the range for the past couple of days. For now, NZD could continue to trade in a volatile manner but the overall pressure is on the downside. Only a NY closing above 0.6400 would indicate that NZD is out of the woods.”