FX Strategists at UOB Group remain neutral on the Kiwi Dollar, adding that further rangebound is expected vs. the greenback.
Key Quotes
24-hour view: “Expectation for NZD to ‘test’ the 0.6725 resistance did not materialize as it traded within a tight 0.6671/0.6702 range. While upward momentum is patchy at best, we still see chance for NZD to test 0.6725 before a pull-back can be expected. A break of the low near 0.6670 would indicate that a pullback to 0.6640 has started”.
Next 1-3 weeks: “NZD rebounded from a low of 0.6620 and hit a high of 0.6696 last Friday. The price action was well within our expected 0.6610/0.6760 consolidation range and at this stage, we are holding on to the same view. That said, the underlying tone has improved somewhat and the immediate bias is for NZD to probe the top end of the expected range”.
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