NZD/USD remains neutral, targets 0.7220 – UOB

According to FX Strategists at UOB Group, the Kiwi Dollar could grind lower towards the 0.7220 area vs. the greenback in the near term.

Key Quotes

24-hour view: “NZD did not threaten the support levels highlighted at 0.7245 and 0.7220 yesterday. However, the undertone remains weak and barring a move back above 0.7310 (minor resistance is at 0.7290), a move towards 0.7245 would not be surprising. However, the major 0.7220 level is likely out of reach for now”.

Next 1-3 weeks: “We just shifted from a bullish to neutral stance yesterday and there is no change to the view. The outlook for NZD is deemed as neutral even though the pullback has scope to extend lower towards 0.7220. A clear break below this level would indicate that NZD has moved into a bearish phase. All in, NZD is expected to stay under pressure in the coming days unless it can reclaim 0.7370”.