In light of the recent price action in NZD/USD, FX Strategists at UOB Group expect further consolidation between 0.6920 and 0.7050.
Key Quotes
24-hour view: “While we expected NZD to strengthen yesterday, we were of the view that ‘it is unlikely to challenge the major resistance at 0.7030’. However, NZD surged to a high of 0.7043. The rapid advance appears to be overdone and NZD is unlikely to strengthen further. For today, NZD is likely to take a breather and trade between 0.7000 and 0.7050.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (14 Jul, spot at 0.6990). As highlighted, the recent sharp but short-lived swings have resulted in a mixed outlook and NZD could trade between 0.6920 and 0.7050 for now. That said, after the rapid rise yesterday, a breach of 0.7050 would not be surprising but NZD has to close above 0.7080 before a sustained advance can be expected.”
