NZD/USD risks a drop below 0.6900 – UOB

The Kiwi dollar could extend its downside momentum to levels below the 0.69 handle, according to analysts at UOB Group.

Key Quotes

“NZD traded sideways for most of yesterday but dropped sharply early this morning after RBNZ’s statement. While the sharp drop appears to be over-extended, there are no signs of stabilization just yet and further decline seems likely from here”.

“The 0.6975 highlighted on Tuesday was exceeded as NZD dropped sharply to a low of 0.6952 early this morning (after RBNZ’s statement). With no signs of stabilization just yet, the focus is for further NZD weakness to 0.6895. Stop-loss is adjusted lower to 0.7080 from 0.7125 even though 0.7020 is already a strong short-term resistance”.