In opinion of UOB Group’s FX Strategists, NZD/USD is forecast to keep trading within the 0.6900-0.7010 range in the next weeks.
24-hour view: “While we expected NZD to weaken yesterday, we were of the view that ‘a break of the major support at 0.6920 is unlikely’. However, NZD dropped briefly to 0.6900 before snapping back up. The sharp rebound appears to be running ahead of itself and is unlikely to extend much further. Overall, NZD is more likely to trade between 0.6930 and 0.6975.”
Next 1-3 weeks: “We have expected NZD to trade within a 0.6920/0.7030 range since last Friday (23 Jul, spot at 0.6975). While NZD dropped below the bottom of our expected range at 0.6920 during NY hours yesterday (low of 0.6900), the decline was short-lived as NZD rebounded strongly. The price actions suggest that NZD is not ready to embark on a sustained directional move just yet. In other words, NZD could continue to range trade, albeit likely within a lower range of 0.6900/0.7010.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.