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NZD/USD is forecast to navigate within the 0.6945-0.7070 range in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “The sharp drop in NZD to an overnight low of 0.6998 came as a surprise. Despite being oversold, the decline could test 0.6990 first before a recovery can be expected. For today, the major support at 0.6945 is not expected to come under threat. On the upside, a breach of 0.7040 would indicate that the current downward pressure has eased.”

Next 1-3 weeks: “The breach of our ‘strong support’ level of 0.7000 yesterday (low of 0.6998) has invalidated our view for NZD to move above 0.7100. The outlook is mixed and NZD is expected to trade between 0.6945 and 0.7070 for now.”