FX Strategists at UOB Group see the pair extending the neutral bias for the time being, adding that the recovery could extend to the mid-0.7000s.
Key Quotes
24-hour view: “NZD rocketed by a whopping +1.28% yesterday, the largest 1-day gain so far this year. The rally is severely overstretched and further sustained rally is not expected for now. NZD is more likely to consolidate its gains and trade sideways at these higher levels. Expected range for today; 0.6960/0.7010″.
Next 1-3 weeks: “After trading mostly sideways for past one week or so, NZD staged a robust rally yesterday and close sharply higher. The recovery appears incomplete and there is room for extension to 0.7050. Only a break back below 0.6910 would indicate that the immediate upward pressure has eased”.
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