According to FX Strategists at UOB Group, NZD/USD is now targeting the 0.6700 region in the near-term.
Key Quotes
24-hour view: “While our view for NZD to strengthen yesterday was correct, our expectation that ‘0.6670 could be out of reach’ was not quite right as NZD popped to a high of 0.6689 before easing off. The combination of overbought conditions and sign of slowing momentum suggests NZD is likely to consolidate and trade sideways. Expected range for today, 0.6630/0.6690.”
Next 1-3 weeks: “After trading between 0.6500 and 0.6600 since early this month, NZD took off suddenly and soared to a high of 0.6650. The break-out of the consolidation range has room to run further and the level to focus on is at 0.6700. Overall, compared to other major currency pairs, the momentum in NZD against USD is not as strong but is expected to improve unless NZD moves below 0.6565.”
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