NZD/USD under pressure below 0.7260 – UOB

In view of FX Strategists at UOB Group, the Kiwi Dollar is expected to remain under pressure unless it can reclaim the 0.7260 level vs. the greenback.

Key Quotes

“We have held the same view since last Friday (16 Mar, spot at 0.7275) that “there is scope for NZD to probe the major 0.7175/85 support zone”. NZD finally moved to this support zone as it dropped to a low of 0.7170 early this morning”.

“While we have previously noted that a clear break of this support zone would indicate that NZD has moved into a bearish phase, we are less convinced now even though there is room for further weakness towards 0.7130”.

“0.7130 is a rather strong support and after the recent swift sell-off, oversold indicators suggest that this level may not be easy to crack. All that said, NZD is expected to continue to stay under pressure until there is a move back above 0.7260. On a shorter-term note, 0.7220 is already a strong resistance level”.