NZD/USD stance shifted to neutral – UOB

In view of analysts at UOB Group, the outlook for the Kiwi dollar has shifted to the neutral side from bearish.

Key Quotes

“The strong and rapid advance in NZD yesterday was clearly unexpected. While the rally appears to be running ahead of itself, there are no signs of weakness just yet and extension above yesterday’s 0.7086 peak would not be surprising (next resistance is nearer to 0.7115/20). On the downside, support is at 0.7030 but only a move back below 0.7000 would indicate that a short-term top is in place”.

“The breach of 0.7080 indicates that the bearish phase that started early last week has ended (revised target at 0.6895 is not met). The outlook from here is viewed as neutral and we expect this pair to trade sideways, likely within a 0.6950/0.7120 range”.