Further upside in NZD/USD is expected to face the next hurdle at the 0.7130 level in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “NZD traded between 0.7050 and 0.7105 yesterday, narrower than our expected sideway-trading range of 0.7040/0.7110. Upward momentum has firmed somewhat but the bias for NZD is on the upside. However, any advance is unlikely to challenge the major resistance at 0.7130 (minor resistance is at 0.7110). Support is at 0.7075 followed by 0.7060.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (18 Oct, spot at 0.7080). As highlighted, while NZD is still strong, the recent rapid rise is overbought and the pace of any further advance is likely to be slower. The next resistance is at 0.7130. The upside risk is deemed intact as long as NZD does not move below 0.7020 (‘strong support’ was at 0.7000 yesterday).”