NZD/USD should remain supported around 0.7010 – UOB

Any pullbacks in the Kiwi dollar is expected to find strong support around the 0.7010 area, suggested analysts at UOB Group.

Key Quotes

“NZD is currently approaching the major 0.7115/20 resistance. An intraday break above this level would not be surprising but a sustained rally seems unlikely. Overall, only a move back below 0.7060 would indicate that the immediate upward pressure has eased”.

“There is no change to the neutral outlook in NZD. However, it is currently pressuring the top-end of our expected sideway trading range of 0.6950/0.7120. At this stage, a sustained move above 0.7120 is not expected (next resistance is at 0.7170). That said, the undertone has clearly improved and any short-term pull-back within the next few days is expected to encounter solid support at 0.7010”.