In opinion of FX Strategists at UOB Group, NZD/USD is forecasted to keep the trade within the 0.6580/0.6710 band in the next weeks.
Key Quotes
24-hour view: “We highlighted yesterday that ‘there is chance for NZD to move higher but 0.6670 is acting as a strong resistance now and the prospect for a clear break of this level is not high’. However, NZD traded in a quite manner between 0.6630 and 0.6653 before closing little changed at 0.6643 (-0.03%). The underlying tone still appears firm and NZD could grind upwards to 0.6670. For today, a sustained rise above this level is not likely (next resistance is at 0.6690). Support is 0.6625 followed by 0.6605.”
Next 1-3 weeks: “We have held the same view since last Wednesday (30 Sep, spot at 0.6600) wherein NZD could trade between 0.6525 and 0.6690 for a period of time. Since then, NZD has edged higher but upward momentum is lackluster and the odds for a sustained advance above 0.6690 are not high. Overall, NZD is still likely trading in a consolidation phase even though the slightly firm underlying tone suggests a higher (and narrower) trading range of 0.6580/0.6710.”
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