NZD/USD could still extend the upside to the 0.7025 level in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “While we expected NZD to advance yesterday, we were of the view that ‘a clear break of 0.6960 is unlikely’. The anticipated advance exceeded our expectations as NZD soared to a high of 0.6999 before closing on a firm note at 0.6975 (+0.57%). Further advance is not ruled out but the major resistance at 0.7025 is unlikely to come under threat (0.7000 is already quite a strong level). Support is at 0.6960 followed by 0.6940.”

Next 1-3 weeks: “The breach of our ‘strong resistance’ at 0.6960 yesterday has invalidated our view for the “pullback in NZD to extend to 0.6850”. The strong rise to 0.6999 has gathered momentum and NZD could advance further to 0.7025. At this stage, a sustained advance above this level appears unlikely. Overall, only a break of 0.6920 would indicate that the current build-up in momentum has fizzled out.”