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FX Strategists at UOB Group noted the Kiwi Dollar continues to point to further rangebound in the next weeks.

Key Quotes

24-hour view: “NZD traded between 0.6428 and 0.6473 yesterday, close to our expected 0.6430/0.6480 consolidation range. NZD subsequently closed right the high of 0.6473 in NY (+0.31%) before extending its gain after the close in NY. Upward momentum is building up quickly and from here, we see chance for a move to 0.6510. Support is at 0.6460 followed by the low near 0.6430. The latter level is expected to be strong enough to hold for today”.

Next 1-3 weeks: “We have expected NZD to weaken since last Thursday (04 Oct, spot at 0.6505) and while the ‘key resistance’ for our view at 0.6510 is still intact, the price action over the past couple of days suggests that NZD has likely found a short-term bottom at 0.6424 on Monday (our expectation for NZD to test 0.6400 did not materialize). There is no change to the overall neutral outlook but NZD is expected to trade sideways from here, likely within a 0.6430/0.6560 range”.