In opinion of FX Strategists at UOB Group, NZD/USD could push higher and retest the 0.7025 level in the near term.

Key Quotes

24-hour view: “Yesterday, we highlighted that there is scope for NZD to ‘continue to advance’. We added, ‘the major resistance at 0.7025 is unlikely to come under threat’. NZD subsequently rose to 0.6988 before easing off. Upward momentum is beginning to wane and this coupled with overbought conditions suggest that NZD is unlikely to strengthen further. For today, NZD is more likely to trade between 0.6930 and 0.6990.”

Next 1-3 weeks: “Our update from yesterday (23 Mar, spot at 0.6960) still stands. As highlighted, while NZD strength is still intact, any further advance is expected to face solid resistance at 0.7025. Overall, only a breach of 0.6890 (no change in ‘strong support’ level from yesterday) would indicate that the current NZD strength that started late last week has come to an end.”