FX Strategists seen NZD/USD facing extra volatility in the next weeks.
24-hour view: “After yesterday’s wild price action, NZD is likely to take a breather today and trade sideways, albeit likely within a broad range. Expected range for today, 0.6250/0.6400.”
Next 1-3 weeks: “The abrupt plunge this morning that sent NZD to a low of 0.6008 and the sharp snap back higher has clouded the outlook. Such violent price action is uncommon but NZD could continue to trade in volatile manner from here but overall stay under pressure. That said, it is left to be seen if can break and hold below 0.6000. From here, NZD has to move and stay above 0.6400 or the risk is on the downside even though any weakness is unlikely to be in a straight line.”