Further upside is likely in NZD/USD on a breakout of the 0.7000 yardstick, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for NZD to consolidate yesterday was incorrect as it soared to 0.6968 before closing on a firm note at 0.6966 (+0.45%). Upward momentum has improved, albeit not by all that much. NZD could strengthen from here but any advance is unlikely to break the major resistance at 0.7000. Support is at 0.6955 followed by 0.6940.”

Next 1-3 weeks: “We have expected NZD to trade sideways within a 0.6875/0.7000 since Monday (11 Oct, spot at 0.6935). After the relatively strong rise yesterday (13 Oct), upward momentum is beginning to build but NZD has to close above 0.7000 before a sustained advance can be expected. The chance for NZD to close above 0.7000 is quite high and would continue to increase as long as NZD does not move below 0.6920 within these few days. Looking ahead, the next resistance above 0.7000 is at 0.7035.”

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