NZD/USD is likely to keep navigating within the 0.6540-0.6710 range in the near-term, in opinion of FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected NZD to advance yesterday but held the view that ‘a break of 0.6670 would come as a surprise’. NZD surprised us as it rose to a high of 0.6673 before easing off quickly. Upward momentum has hardly improved and for today, NZD is likely to consolidate and trade between 0.6620 and 0.6670.”
Next 1-3 weeks: “We highlighted yesterday (03 Aug, spot at 0.6620) that ‘a break of 0.6600 would indicate that NZD has moved into a consolidation phase’. NZD subsequently dropped to 0.6575 before settling on a soft note at 0.6613 (-0.24%). For the next 1 to 2 weeks, NZD is likely to trade sideways, expected to be between 0.6540 and 0.6710. Looking forward, a clear break of 0.6540 would suggest the start of a deeper pullback in NZD.”
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