- NZD / USD bounces off 0.6670 to hit new monthly highs at 0.6720.
- The kiwi resumes its uptrend as the USD loses momentum.
- NZD / USD: The break of 0-6720 could accelerate the uptrend – UOB.
The New Zealand dollar it recovered on Tuesday, after a slight pullback on Monday. The kiwi bounced from the 0.6670 support area to break past the trading range of the past five weeks and reached new highs at 0.6720 so far.
Kiwi Strengthens Again As USD Pulls Back
The NZD / USD returned to the bullish path on Tuesday and the US dollar declined moderately after the strong recovery on Monday. The USD index is down 0.25%, and investors become more cautious, reluctant to place long-term bets, as coronavirus cases surge in the US and Europe just a week before the US presidential election. USA
On the macroeconomic front, New Zealand’s trade surplus widened in September, and exports fell to 4.01B. from 4,412B. Imports increasing to 5.02B from 4.69B.
NZD / USD: The upside could accelerate above 0.6720 – UOB
On the technical front, the UOB currency strategy team sees the pair accelerating its uptrend above 0.6720: “The up appears to be more vulnerable but the NZD has to close above 0.6720 before a breakthrough can be expected. sustained”. While the bullish momentum has improved, it is not strong for now and the NZD has to break above the 0.6720 level before further gains can be expected. At this stage, the outlook for such a move is not high, but it would rise further as long as the NZD does not move below 0.6620 in these few days. ”
Credits: Forex Street
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