NZD/USD still seen navigating within the 0.7040-0.7160 range in the next weeks, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “Yesterday, we held the view that ‘there is room for NZD to weaken but a sustained decline below 0.7085 is unlikely’. Our expectations did not materialize as NZD traded in a quiet manner between 0.7098 and 0.7121. The current movement is viewed as part of a consolidation and for today, NZD is expected to trade sideways, likely within a 0.7100/0.7140 range.”
Next 1-3 weeks: “There is not much to add to our current view where NZD is likely to consolidate and trade between 0.7040 and 0.7160. Looking ahead, the downside risk appears to be a tad higher but only a clear break of 0.7040 would indicate the start of a deeper pullback in NZD.”
