FX Strategists at UOB Group expect the Kiwi Dollar to remain sidelined vs. the greenback in the next weeks.
Key Quotes
24-hour view: “Expectation for NZD to “test last week’s 0.6850 top” did not materialize as it traded in a muted manner and registered a tight range of 0.6802/0.6832. The undertone has weakened somewhat but any weakness from here is viewed as part of lower 0.6780/0.6830 range and a sustained decline in NZD is not expected”.
Next 1-3 weeks: “Despite the relatively strong recovery yesterday, NZD does not appear to be ready to embark on a sustained directional move. That said, the improved undertone suggests it has moved into a higher trading range of 0.6740/0.6880 instead of the 0.6710/0.6850 expected previously. Looking further out, a clear break of 0.6880 would greatly increase the odds for a move to 0.6930″.
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