NZD/USD is still seen navigating the 0.6620-0.6750 range in the next weeks, noted FX Strategists at UOB Group.
24-hour view: “Our expectation for NZD to consolidate yesterday was incorrect as it soared to a high of 0.6757. The subsequent swift pull-back from the high has room to extend lower but any weakness is expected to encounter solid support at 0.6680 and the next support at 0.6660 is likely out of reach. Resistance is at 0.6730 followed by 0.6750.”
Next 1-3 weeks: “NZD rose to a high of 0.6738 yesterday, not far from the top of our expected 0.6600/0.6750 consolidation range that we first indicated last Thursday (10 Sep, spot 0.6675). Upward momentum has improved a tad but for now, the odds for a sustained rise above 0.6750 are not high. In other words, there is no change in view and we continue to expect NZD to trade sideways for now, expected to be within a 0.6620/0.6750 range (narrowed from 0.6600/0.6750).”